South Korea Deploying System to Monitor Crypto Phishing

South Korean law enforcement agencies are strengthening the monitoring infrastructure to bust the growing cryptocurrency phishing websites, the number of which have snowballed with the recent surge in cryptocurrency prices.

As reported by local media Yonhap on Sunday, the country’s ICT ministry is collaborating with the National Police Agency to deploy and maintain the infrastructure. The system will run a 24-hour surveillance system to detect and swiftly take down fraudulent websites.

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The ministry revealed that the number of phishing attacks via text messages increased significantly in recent months. These messages redirect digital currency exchange users to malicious websites and perpetrators that steal user credentials. The Korean authorities already banned 32 such phishing websites in the past three months, while the count for last year stood at 41.

Additionally, the country’s police have been actively cracking down on several phishing platforms since last March. The report outlined that the police department is investigating 21 cases related to the fraudulent access and sale of cryptocurrencies.

Laws around Crypto 

South Korea remained one of the top currency markets. The digital currencies in the country are often sold at a premium rate when compared to the prices in the global markets. The skyrocketing crypto demand and the nature of cryptocurrencies also make the industry vulnerable to scams.

Meanwhile, the financial market regulators in the country are getting strict on the exchanges. Amendment to an existing law, which will come into effect by the end of September, makes it mandatory for exchanges to maintain real-name bank accounts for every customer. Now, the regulators are seeking data from the banks to identify all operating crypto exchanges.

Furthermore, the South Korean government is focused to eliminate the use of cryptocurrencies in money laundering by introducing strict regulations to trace illegal cryptocurrency transactions in the country.

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