South Korea Lawmakers Seek Expanded Crypto Investigation Powers
A South Korean lawmakers' bill aims to expand the authority of the Financial Intelligence Unit (FIU) in investigating unregistered cryptocurrency businesses.
The proposed amendment to the Act on Reporting and Using Specified Financial Transaction Information would allow anyone to report suspected violations to the FIU, which could then investigate and analyze alleged offenses, file complaints with relevant authorities, or request criminal investigations.
The current system relies on police and other authorities to pursue investigations after the FIU identifies suspected unregistered operators. However, it was revealed that between August 2022 and August 2025, police suspended or dropped investigations into 23 of 25 unregistered virtual asset service providers referred by the FIU.
The bill remains in the introduction stage and must pass the National Assembly before amending the existing law.