A group of South Korean lawmakers has submitted a bill proposing amendments to the existing financial law. The document will expand the authority of the Financial Intelligence Unit (FIU) to investigate the activities of unregistered crypto companies.
On Thursday, People Power Party lawmaker Ohm Tae-young and nine other legislators submitted a bill to add a new provision to the Act on Reporting and Using Specific Financial Transaction Information.
According to the proposal, any person will be able to report suspected violations of the law to the FIU. The agency will gain the authority to investigate and analyze such violations, file complaints with relevant authorities, request criminal investigations, and transfer information to investigators.
The bill is currently at the submission stage and must be reviewed by the National Assembly before amendments are made to the existing law.
Under the current system, the FIU identifies suspected unregistered operators but relies on police and other agencies to conduct investigations.
Police suspended investigations or preliminary inspections into 23 out of 25 unregistered virtual asset service providers referred by the FIU between August 2022 and August 2025, according to Yonhap. The companies and related individuals were based overseas.
Crypto companies serving clients in South Korea must register with the FIU. The regulator reported in June that 28 providers were registered and that it had referred cases of 40 suspected illegal operators to investigative authorities.
Related: South Korea Lowers Travel Rule Threshold for Crypto Transfers
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