South Korea Proposes Strengthening Regulation of Unregistered Crypto Firms

A South Korean bill aims to give the country's financial intelligence agency more authority over unregistered crypto firms. The proposed legislation would allow anyone to report suspected violations of the law, enabling the Financial Intelligence Unit (FIU) to investigate and take action.

The current system relies on police and other authorities to pursue investigations after the FIU identifies potential issues. However, data shows that 23 out of 25 unregistered virtual asset service providers referred by the FIU between August 2022 and August 2025 had their investigations suspended or put on hold.

The bill's proponents argue that this arrangement has limited enforcement, allowing unregistered services to continue operating without consequence. The proposed amendment would give the FIU a more direct role in pursuing cases it currently refers to other agencies.