South Korea Lawmakers Push for Tougher Crypto Regulation

South Korean lawmakers are pushing to strengthen the country's financial intelligence agency in its efforts to combat unregistered cryptocurrency firms.

A bill filed by People Power Party lawmaker Eom Tae-young and nine other lawmakers would grant the Financial Intelligence Unit (FIU) more direct authority to investigate these businesses.

The proposed amendment aims to close a gap between detection and investigation, which has allowed unregistered operators to continue serving Korean users despite being identified as such by the FIU.

Under the current system, the FIU identifies suspected unregistered operators but relies on police and other authorities to pursue investigations. However, data reported by Yonhap shows that police suspended or preliminary inquiries into 23 of 25 unregistered virtual asset service providers referred by the FIU between August 2022 and August 2025.

The bill's supporters argue that this arrangement has limited enforcement efforts, leading to a more direct role for the FIU in pursuing cases it currently refers to other agencies. If enacted, the amendment would mark a notable shift in how the country enforces its crypto registration regime.