• South Korea’s prosecution service is purchasing blockchain analytics software for use in catching people laundering crypto overseas
• The project, called the “Advanced Cyber Investigation System”, is the brainchild of the Supreme Prosecutor’s Office and will be completed by November 2021
• Law enforcement and judiciary have been given sweeping powers to examine crypto transaction data at domestic exchanges, but needed a tool to track virtual currency addresses generated by foreign exchanges
South Korean Prosecutors Buy Blockchain Analytics Tools
South Korea’s prosecution service will purchase new blockchain analytics software in an effort to crack down on ‘crypto money laundering’. The project, dubbed the “Advanced Cyber Investigation System”, was initiated by the Supreme Prosecutor’s Office and it has opened a bidding process which will be wrapped up this month. The winning contractor has until November 2021 to deliver the tools.
Purpose of New Tools
The purpose of these new tools is to apply the same level of scrutiny that is currently applied at domestic exchanges to overseas exchanges as well. Police and judiciary are allowed to search exchanges as part of their investigations but criminals might be evading investigators by using overseas crypto exchange platforms. Thus, these tools would help law enforcers track virtual currency addresses generated by foreign exchanges. Additionally, they could also help track illegally filmed videos and crack down on pornographic sites even if they periodically change site addresses.
Existing Monitoring Tool
Law enforcers and judiciary staff have already been using a monitoring tool that was first deployed in prosecutors’ offices nationwide in April 2021. However, this tool cannot currently identify virtual currency addresses generated by foreign exchanges which is why a more advanced system needs to be purchased for this purpose.
Increasing Spending on Blockchain Analytics Tools
Law enforcement and judiciary spending on blockchain analytics tools is on the rise in South Korea due to its importance in preventing illegal activities such as money laundering with cryptocurrencies. Late last year, police and prosecutors announced that they would quadruple their spending on tools that help them monitor cryptocurrency transactions both domestically and internationally.
Conclusion
South Korea’s prosecution service is taking steps towards improving its efforts at tracking digital currencies used for money laundering through purchasing new blockchain analytics software from a contractor who must deliver it by November 2021. This will enable law enforcement personnel to gain access into virtual currency addresses generated by foreign exchange platforms thus helping them prevent illicit activities involving cryptocurrencies both domestically as well as internationally.