A group of ten South Korean lawmakers has introduced a legislative measure designed to grant the Financial Intelligence Unit (FIU) independent enforcement powers regarding unregistered cryptocurrency operators. The bill, designated as number #2220655, was filed on Thursday by Representative Eom Tae-young of the People Power Party alongside nine colleagues.
The proposal amends the Act on Reporting and Using Specified Financial Transaction Information by introducing a new provision, Article 15-4. According to South Korea's legislative tracking portal, the bill was referred to the National Assembly's political affairs committee, which oversees the Financial Services Commission (FSC), on August 21.
Under the current regulatory framework, the FIU operates the registration regime that crypto firms serving South Korean customers must join, but it lacks direct investigative powers. When the FIU identifies suspected unregistered operators, it must rely on police and other external agencies to pursue them. The statement of reasons accompanying the new bill argues that this reliance on inter-agency cooperation and formal investigation requests hinders fast responses and leaves loopholes utilized for money laundering, illegal currency exchange, and illicit overseas remittances.
Data cited in the legislative filing highlights challenges with the existing enforcement process. Between August 2022 and August 2025, the FIU referred 25 unregistered virtual asset service providers to the police. However, police suspended investigations or preliminary inquiries in 23 of those cases, largely because the firms and associated individuals were located overseas and proved difficult to access through standard procedures.
If the proposed measure passes, individuals could report suspected violations directly to the FIU. The unit would then gain the authority to investigate allegations, analyze data, file complaints, request criminal investigations, or pass information directly to investigators. As of June, the FIU reported having 28 registered providers and stated it had referred 40 suspected illegal operators to investigative authorities overall.
The bill must still clear committee review and a floor vote in the National Assembly. Legislative observers note that wording can change throughout the process, and bills filed by individual lawmakers face the risk of expiring unpassed at the end of an Assembly term.
