South Korea Police Probe 40 Unregistered Crypto Operators

The referrals are part of a broader campaign aligned with FATF standards. Lee Hyung-joo, the FIU Director, attended the FATF's 34th plenary in Paris and called on member states to scrap transaction thresholds under the crypto Travel Rule. South Korea plans to require identity checks for all crypto transactions starting in August.

Currently, identity verification is mandatory only for transactions above 1 million won, roughly $730. Lee argued that inconsistent licensing standards across jurisdictions create regulatory arbitrage, weakening anti-money laundering enforcement.

South Korea's crypto regulatory actions have expanded through 2026. Authorities previously launched criminal proceedings against an individual running pump-and-dump schemes. Government agencies also stepped up cooperation with banks and credit card firms to block cross-border illegal transactions.

For traders and exchanges operating in South Korea, the message is clear: registration is not optional, and the window for unlicensed activity is closing. The FIU's referral list likely includes names that will surface as police investigations progress.