South Korea's FIU Seeks Direct Power to Tackle Unregistered Crypto Operators

A proposed bill in South Korea aims to give the Financial Intelligence Unit (FIU) more power to crack down on unregistered virtual-asset operators. The bill, introduced by 10 lawmakers including Um Tae-young of the People Power Party, would allow anyone to report suspected violations of the law directly to the FIU chief.

If a report is received or the FIU chief determines there are signs of a violation, the agency could take necessary steps, including investigating and analyzing the relevant facts. The bill would also provide a legal basis for the FIU to file complaints with investigative authorities, request criminal investigations, and provide necessary information based on the results of those inquiries.

The proposal highlights the difficulties faced by the FIU in directly tackling unregistered operators such as private coin exchange shops. These entities can be exploited for crimes including money laundering, illegal currency exchange, and illicit overseas remittances, the lawmakers said. The current system relies on cooperation between relevant agencies or referrals for investigation, making a swift response difficult.