South Korea Transfers Approximately 40 Unregistered Virtual Asset Service Providers to Law Enforceme

On June 24, the Financial Intelligence Unit (FIU) under South Korea's Financial Services Commission (FSC) reported that around 40 unregistered virtual asset service providers have been referred to law enforcement. According to South Korea's Specific Financial Information Act, platforms conducting cryptocurrency business in the country must obtain Information Security Management System (ISMS) certification and complete registration with the FIU. This regulation also applies to overseas platforms providing services to South Korean users. Unregistered platforms are not subject to laws such as the Virtual Asset User Protection Act, leaving users vulnerable to risks such as personal information leaks, hacking, fund misappropriation, and exit scams, making it difficult to seek redress and compensation after losses occur. Additionally, the FIU disclosed various typical violations, including attracting South Korean users through channels like Telegram and KakaoTalk while deliberately not providing services in Korean to evade regulation; and private exchange institutions offering stablecoin and fiat currency exchange services to international students and foreign workers. The FIU will continue to collaborate with relevant agencies to strengthen the crackdown on illegal cryptocurrency activities and expand joint investigations and regular monitoring mechanisms.