In a bid to counter North Korea’s illicit activities involving cryptocurrencies and other cyber threats, the United States and South Korea recently convened the fourth working group meeting.
The meeting, which was held in South Korea and led by U.S. Deputy Special Representative for North Korea Jung Pak and her South Korean counterpart, Lee Jun-il, aimed to strengthen cooperation with virtual asset service providers and disrupt the flow of unlawful funds into North Korea’s weapons development programs.
The joint efforts of the U.S. and South Korea come after alarming reports of North Korea’s cyber theft activities. South Korea’s National Intelligence Service revealed that Pyongyang managed to steal at least US$700 million worth of virtual assets in 2022 alone.
To address this growing threat, the allies are adopting a comprehensive approach. This includes raising awareness about the dangers presented by cyber actors from DPRK and fostering increased information sharing between governments and the private sector on cybersecurity matters.
New Legislation Aims To Safeguard Crypto Investors
Meanwhile, South Korea is taking further action to combat cryptocurrency crimes within its own borders. The country has established an interagency investigation unit dedicated to addressing the rise in illicit activities in the crypto market and protecting investors.
The unit, named as the Joint Investigation Centre for Crypto Crimes, comprises 30 investigators from various government agencies. These include the prosecution, Financial Supervisory Service, National Tax Service, and Korea Customs Service.
The launch of this unit coincides with the passage of South Korea’s groundbreaking legislation at the National Assembly. The new law aims to safeguard crypto investors by introducing penalties, including prison sentences and fines, for those engaged in unfair trading practices, market manipulation, and illicit transactions involving virtual assets.
In addition, the Korea Securities Depository and Code have entered into a business agreement to promote the adoption and utilization of Legal Entity Identifiers (LEIs) in the virtual asset market.
LEIs serve as standardized identification numbers assigned to corporations worldwide involved in financial transactions. Their purpose is to improve transparency and efficiency in financial reporting and supervision.
As the U.S. and South Korea forge ahead in their fight against crypto-related cyber threats, their collaborative efforts hold promise as a global model for addressing the continually evolving challenges posed by this dark aspect of digital currencies.
With determination and collaboration, nations and the global financial system strive to protect themselves from crypto-related crimes through innovative solutions.
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