South Korea's financial authorities will set up a team to inspect suspicious cryptocurrency transactions to crack down on money laundering, tax evasion and other crimes.

The government is set to implement an anti-money laundering guideline in relation to digital coin investment next Tuesday.

When the new guideline comes into effect, the Financial Intelligence Unit(FIU) under the Financial Services Commission(FSC) will launch a task force to analyze and inspect suspicious transactions reported by six local banks, including Shinhan Bank and Kookmin Bank.

After the analysis, the FIU will refer tax-related cases to the National Tax Service or Korea Customs Service, while sending crime-related information to the police or prosecutors. 

Local banks are required to report to the FIU inspection team when digital coin traders deposit or withdraw more than ten million won a day or 20 million won in a week. Traders who make transactions five times a day or seven times a week will also be reported as suspicious.