Korean Lawmakers Seek Broader FIU Powers Over Unregistered Crypto Firms
South Korean lawmakers have proposed new enforcement powers for the Financial Intelligence Unit (FIU) against unregistered crypto businesses. The bill would allow the FIU to investigate suspected violations before referring cases to other authorities.
The proposal responds to enforcement gaps involving foreign crypto operators serving South Korean customers. Currently, the agency relies on police after identifying companies that may operate without registration.
Under the bill, any person could report suspected legal violations directly to the FIU. The agency could then investigate and analyze the reported activities before deciding its next action. It could also file complaints or request criminal investigations.
The proposed amendment targets enforcement gaps involving unregistered overseas crypto providers that serve South Korean customers. Between August 2022 and August 2025, police suspended investigations into 23 of 25 FIU referrals involving suspected operators based outside South Korea.