Crypto▼ Bearish
South Korea Bill Lets FIU Probe Unregistered Crypto Platforms Directly
South Korea's FIU would gain direct investigative powers over unregistered crypto exchanges under a new bill. Police dropped 23 of 25 referred cases since 2022.
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South Korean lawmakers introduced legislation Thursday that would let the Financial Intelligence Unit investigate unregistered crypto platforms before referring cases to police. The proposal, submitted by Representative Eom Tae-young of the People Power Party with nine co-sponsors, amends the Act on Reporting and Using Specified Financial Transaction Information.
If enacted, the FIU could open preliminary inquiries into suspected violations, file complaints, request criminal proceedings, or hand evidence to investigative bodies. Anyone could submit a report about suspected regulatory breaches directly to the agency. The FIU would then decide on next steps.
Currently, crypto businesses targeting South Korean consumers must register with the FIU. The agency mostly relies on police after flagging unlicensed operators. The proposed law would expand the FIU's role early in enforcement.
Police data show the problem with overseas-based platforms. Between August 2022 and August 2025, police dropped 23 of 25 cases referred by the FIU, according to Yonhap. The companies and individuals involved were mostly outside South Korea, making domestic enforcement harder.