Lawmakers in South Korea are attempting to expand the Financial Intelligence Unit’s (FIU) authority to look into unregistered cryptocurrency companies doing business there. A measure to alter the Act on Reporting and Using Specified Financial Transaction Information has been presented by nine parliamentarians, including Eom Tae-young of the People Power Party.
If approved, the plan will enable anybody to notify the FIU immediately of any suspected infractions. The agency would then have greater authority to file complaints, investigate any violations, request criminal investigations, and give investigators information. The bill is still in its early stages and cannot become law unless it is approved by the National Assembly.
Under the current system, the FIU can identify businesses that appear to be operating without registration, but police and other investigative agencies are frequently in charge of following the issue. The lawmakers are seeking to close what they see as a gap between identifying illegal operators and actually investigating them.
Source: x.com
The issue has become more important as South Korea continues to attract a large number of crypto users. Companies providing virtual asset services to South Korean customers are required to register with the FIU.
However, enforcement against overseas operators has proved difficult. According to Yonhap, police suspended investigations or preliminary inquiries into 23 of 25 unregistered virtual asset service providers referred by the FIU between August 2022 and August 2025. The companies and individuals involved were reportedly based outside South Korea.
The proposed changes would give the FIU a more active role rather than leaving the agency mainly responsible for identifying suspicious businesses.
Under the bill, the FIU could investigate and analyse suspected violations, submit complaints to relevant authorities and request criminal investigations when necessary. It could also provide information collected during its work to investigators.
The move comes as South Korea continues to strengthen oversight of its digital asset industry. In June, the FIU said 28 virtual asset service providers were registered in the country. It also said it had referred 40 suspected illegal operators to investigative authorities.
For the crypto industry, stronger enforcement could make it harder for unregistered businesses to target South Korean customers from overseas. Giving the FIU more investigation authority might also enhance cooperation between law enforcement and banking regulators.
Before becoming legislation, the idea still has a long way to go. The change must first be discussed and approved by lawmakers in the National Assembly.
However, if the measure is approved, it may significantly alter how South Korea handles unregistered cryptocurrency companies. Instead of simply identifying suspected operators and referring cases elsewhere, the FIU could gain a much more direct role in investigating potential violations.
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