Altcoins News

Story: South Korean Lawmakers Propose Bill to Empower FIU in Crypto Investigations

By Pankaj K

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23 Out of 25 Investigations Suspended. Between August 2022 and August 2025, the FIU referred cases involving 25 unregistered virtual…

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Bill Still Needs National Assembly Sign-Off. The legislation is early-stage. It can't become law without National Assembly approval, and no…

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South Korea's Financial Intelligence Unit might be getting a serious upgrade. A group of ten lawmakers, led by Eom Tae-young of the People Power Party, submitted a bill to expand…

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The proposal targets the Act on Reporting and Using Specified Financial Transaction Information — basically the core law governing how financial data gets reported and acted on…

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And the numbers make the case pretty clearly.

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Between August 2022 and August 2025, the FIU referred cases involving 25 unregistered virtual asset service providers to authorities.

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A big part of the problem is geography. Many of the suspected illegal operators run their businesses from overseas, which makes it harder for domestic agencies to act.

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As of June, 28 providers had registered and complied with the requirement. Meanwhile, 40 suspected illegal operators were referred to law enforcement.

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See also: Laser Digital Japan Secures First New Crypto Exchange License in Four Years

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The legislation is early-stage. It can't become law without National Assembly approval, and no timeline for a vote has been made public.

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What's clear is that the current setup isn't working well enough. The FIU has been doing its job — identifying unregistered operators, building cases, making referrals — but the…

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Crypto regulation across Asia has been tightening over the past few years, with multiple governments wrestling with the same basic challenge: exchanges and operators that serve…

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The bill would also open up a citizen-reporting mechanism, letting individuals flag suspected violations to the FIU. That's a meaningful shift.

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Read also: Trumps $1.4 Billion Crypto Profits Ignite Controversy Over GENIUS and Clarity Acts

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Eom Tae-young's group isn't the first to push for stronger crypto oversight in South Korea, and it won't be the last.

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