South Korea Lawmakers Seek FIU Enforcement Against Unregistered Crypto Firms

TLDR

• South Korea lawmakers seek broader FIU powers over unregistered crypto firms

• FIU could investigate suspected crypto violations before referring cases to police

• Bill targets enforcement gaps involving unregistered overseas crypto providers

• Police halted 23 of 25 FIU referrals involving unregistered crypto operators

• Cross-border crypto rules will add another compliance layer from December 2026

South Korea lawmakers have proposed new enforcement powers for the Financial Intelligence Unit against unregistered crypto businesses. The bill would allow the FIU to investigate suspected violations before referring cases to other authorities. The proposal responds to enforcement gaps involving foreign crypto operators serving South Korean customers.

South Korea Bill Expands FIU Investigation Powers

People Power Party lawmaker Eom Tae-young and nine lawmakers introduced the amendment on Thursday. The proposal would change the Act on Reporting and Using Specified Financial Transaction Information. It would give the FIU broader authority over suspected unregistered virtual asset service providers.

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