A group of South Korean lawmakers has introduced a bill that would widen the Financial Intelligence Unit’s powers over unregistered crypto businesses. Filed Thursday by People Power Party lawmaker Eom Tae-young and nine other lawmakers, the proposal would amend the Act on Reporting and Using Specified Financial Transaction Information by adding a new provision tied to suspected violations.
If passed, the measure would allow anyone to report suspected breaches to the FIU. The agency would be able to investigate and analyze alleged violations, file complaints with relevant authorities, request criminal probes, or share information directly with investigators. Under the current framework, the FIU can identify suspected unregistered operators but still depends on police and other authorities to carry investigations forward.
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 related individuals were reportedly based overseas. South Korea requires crypto companies serving local customers to register with the FIU. In June, the regulator said 28 providers were registered and that it had referred 40 suspected illegal operators to investigative authorities.
South Korean lawmakers have introduced a bill that would expand the Financial Intelligence Unit’s authority to investigate unregistered crypto businesses and refer cases directly to law enforcement.
Bill seeks to amend existing financial law
According to Cointelegraph, People Power Party lawmaker Eom Tae-young and nine other lawmakers filed the bill on Thursday. The proposal would add a new provision to the Act on Reporting and Using Specified Financial Transaction Information.
Under the bill, anyone could report suspected violations of the law to the FIU. The agency would be allowed to investigate and analyze the alleged violations, file complaints with the relevant authorities, request criminal investigations, or provide information to investigators.
FIU currently depends on police and other agencies
The proposal is still at the introduction stage and must pass the National Assembly before it can change the existing law.
Under the current system, the FIU can identify suspected unregistered operators, but it relies on police and other authorities to pursue investigations.
Yonhap reported that 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 related individuals were reportedly based overseas.
Crypto firms serving South Korean users must register
Crypto companies that serve customers in South Korea are required to register with the FIU. In June, the regulator said 28 providers were registered and that it had referred 40 suspected illegal operators to investigative authorities.
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