Korean Lawmakers Seek Broader Powers for Cryptocurrency Regulator

A group of South Korean lawmakers has introduced a bill to expand the Financial Intelligence Unit's (FIU) authority over unregistered cryptocurrency businesses.

The proposal, filed by People Power Party lawmaker Eom Tae-young and nine other lawmakers, aims to add a new provision to the Act on Reporting and Using Specified Financial Transaction Information.

Under the current system, the FIU identifies suspected unregistered operators but relies on police and other authorities to pursue investigations. In recent years, this process has been slow, with 23 of 25 unregistered virtual asset service providers referred by the FIU between August 2022 and August 2025 having their investigations suspended or preliminary inquiries terminated.

The bill, if passed, would grant the FIU the power to investigate and analyze alleged violations, file complaints with relevant authorities, request criminal investigations, and provide information to investigators. Anyone could report suspected violations of the law to the FIU under the proposed amendment.