South Korea Crypto Regulators Eye Broad Account Freeze Powers

A proposed amendment to South Korea's Act on Reporting and Use of Certain Financial Transaction Information could give the country's Financial Intelligence Unit (FIU) broad powers to freeze crypto exchange accounts suspected of moving illegal funds.

The amendment, filed by fifteen lawmakers from the ruling People Power Party on July 28, would redefine 'account' to include unique ID numbers assigned to users by exchanges, bringing exchange accounts under the same freeze powers as bank accounts.

If passed, the FIU could request a payment suspension on any account tied to suspected illegal transfers for up to 30 days with one 30-day extension. Exchanges would have to act immediately, without review or warning to the account holder.