Han Dong-hoon, South Korean justice minister, visited New York recently to discuss how both nations can collaborate to investigate financial crimes. The investigation's data, which will focus on crypto-related crimes, will be shared by both countries.
Dong-hoon met with Andrea M. Griswold, Securities, and Commodities Task Force co-chief at the United States Attorney's office for the Southern District of New York. According to a local Korean daily, he met the same offices' Securities and Commodities Fraud Task Force chief, Scott Hartman, on Tuesday.
During the discussion, both sides sought ways they strengthen cooperation and share information on crypto-related crimes. The cooperation aims to take prompt action concerning the rate at which securities fraud is increasing. In addition, it's reported that both countries have agreed to exchange their most recent investigation data on Terra Luna. Terra Luna is being investigated in the U.S and South Korea.
The Terra ecosystem crash, valued at $40 billion, caused both countries to investigate the company. Recently, the United States began a fresh investigation against Do Kwon, Terra's co-founder. Similarly, prosecutors in South Korea are investigating several charges, which include tax evasion, fraud, and market manipulation.
The U.S and South Korea's cooperation is likely to spearhead more cooperation between countries as regulators are now focusing on crypto-related crimes. Interestingly, South Korea is one of the nations with the strictest crypto regulations worldwide. The country follows strict anti-money laundering and know your customer guidelines.
Additionally, the entire issue with Terra promoted the launch of a new cryptocurrency oversight committee by Korean lawmakers. The committee was formed to assess new cryptocurrency projects that are listed on crypto exchange platforms. According to predictions by crypto experts, the Terra-USD crash may cause centralized stablecoins to be favored over their algorithmic counterparts by regulators.