South Korean Lawmakers Seek Broader Powers for Crypto Investigations
A group of South Korean lawmakers has proposed expanding the authority of the Financial Intelligence Unit (FIU) to investigate unregistered cryptocurrency businesses. The bill, introduced 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. According to Yonhap, police suspended investigations or preliminary inquiries into 23 of 25 unregistered virtual asset service providers referred by the FIU between August 2022 and August 2025.
The bill would allow anyone to report suspected violations of the law to the FIU, which could then investigate and analyze alleged violations, file complaints with relevant authorities, request criminal investigations, or provide information to investigators. The proposal remains at the introduction stage and must pass the National Assembly before it can amend the existing law.
The FIU has reported that 28 virtual asset service providers were registered, while 40 suspected illegal operators have been referred to investigative authorities.