The South Korean prosecution would develop a system, which would trace investors through cryptocurrency exchanges.

The prosecution has recently sent a letter to the Korea Blockchain Association (KBA). In the letter, the prosecution said it would use the tracking tool for criminal investigation.

So far the exchanges had sent trading documents to the investigators when abnormal and suspicious trading occurred.

The KBA is reviewing whether it is legal for the prosecution to install such an online system. It said it is still unclear whether it is legal for the prosecution to retain data.  It also questioned whether other countries have the system.

However, the prosecution might have limits in tracking. Firstly, it could not trace trading made outside the system, namely over-the-counter (OTC) trading. Secondly, it could not confirm the owners of cryptocurrencies kept in personal Cold Wallet. Thirdly, tracking the domestic exchanges is meaningless as cryptocurrency trading takes place worldwide. International coordination is necessary.

However, so far no global rules and coordination are in place on cryptocurrency trading.