South Korea is urgently working to convert its temporary crypto investigative unit into a permanent one. According to a report by local news outlet Segye Ilbo, this move responds to the increasing cases of crypto-related fraud and crimes in the country.

The report states that South Korea’s Justice Ministry plans to begin discussions with the Ministry of the Interior and Safety in May. These talks will focus on formalizing the Joint Virtual Asset Crime Investigation Unit.

Currently, this unit operates temporarily under the Seoul Southern District Prosecutor’s Office, meaning it could be disbanded at any time. However, the ongoing efforts aim to solidify its status.

South Korea hopes that making the unit permanent will enhance its efficiency. To this end, the country plans to appoint new prosecutors and review budget allocations for optimal operation.

Launched last July, the unit is South Korea’s first crypto-focused investigative body, comprising about 30 experts from seven financial and tax regulatory authorities, primarily focused on digital asset crimes.

### Surge in Crypto Crime in South Korea

The decision to make the unit permanent is driven by the surge in crypto-related criminal activities. A February report by South Korea’s Financial Intelligence Unit highlighted this increase, noting that local crypto companies reported 16,076 suspicious transactions in 2023, a 49% rise from 2022.

In response, South Korea is taking immediate steps to address the issue, including formalizing the investigative unit.

Additionally, the country will implement its first comprehensive crypto regulation on July 19. This new regulation aims to protect investors and includes stricter criminal penalties, such as life sentences for manipulating the crypto market.