A group of South Korean lawmakers has introduced legislation to expand the investigative authority of the Financial Intelligence Unit (FIU) over unregistered cryptocurrency businesses.
On Thursday, People Power Party lawmaker Eom Tae-young and nine other lawmakers filed a bill proposing an amendment to the Act on Reporting and Using Specified Financial Transaction Information.
Under the terms of the proposed bill, any individual would be permitted to report suspected violations of the law to the FIU. The agency would then gain the ability to investigate and analyze alleged violations, file complaints with relevant authorities, request criminal investigations, and provide information directly to investigators.
Currently, while the FIU can identify suspected unregistered operators, it must rely on police and other external authorities to pursue investigations. According to reports from Yonhap, police suspended preliminary inquiries or investigations into 23 out of 25 unregistered virtual asset service providers referred by the FIU between August 2022 and August 2025. Reports indicated that these companies and related individuals were based overseas.
Cryptocurrency companies that serve South Korean customers are required to register with the FIU. In June, the regulator reported that 28 providers were officially registered and that it had referred 40 suspected illegal operators to investigative authorities.
The bill is currently at the introduction stage and must successfully pass through the National Assembly before it can enact changes to the existing law.
