South Korean lawmakers seek expanded FIU powers over unregistered crypto firms
Reported by Cointelegraph · AI-assisted summary by ChikoCorp AI News Desk
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Summary
South Korean lawmakers, led by People Power Party member Eom Tae-young and nine others, introduced a bill to expand the Financial Intelligence Unit’s (FIU) authority to investigate unregistered crypto firms. The bill proposes allowing anyone to report suspected violations and empowering the FIU to conduct investigations, file complaints, and request criminal probes. The bill is currently at the introduction stage and requires National Assembly approval.
Why it matters
The source suggests this expansion could strengthen the FIU’s ability to tackle unregistered virtual asset service providers, addressing limitations in the current system where the FIU can only identify suspects but must rely on police and other authorities for investigations. The source does not elaborate further on broader market or policy implications.
Key context
Currently, the FIU identifies but does not independently investigate unregistered crypto operators, relying on other agencies to pursue investigations. Between August 2022 and August 2025, police suspended investigations into 23 of 25 unregistered service providers referred by the FIU, many involving overseas-based entities. Crypto firms serving South Korean clients must register with the FIU, which had 28 registered providers as of June and had referred 40 suspected illegal operators to authorities.
Key numbers and entities
The key entities mentioned are the Financial Intelligence Unit (FIU), People Power Party lawmaker Eom Tae-young, the National Assembly, and South Korean police. Specific figures include 23 of 25 unregistered virtual asset providers with suspended investigations, 28 registered providers as of June, and 40 suspected illegal operators referred by the FIU.
What remains unclear
The source does not specify the expected timeline for the bill’s passage, any opposition or support details within the National Assembly, or how the FIU’s expanded powers would be operationalized in practice. It also does not clarify how cross-border investigations involving overseas operators would be handled under the new authority.