South Korea proposes new FIU powers to investigate unregistered crypto firms

South Korean lawmakers have introduced legislation that would give the Financial Intelligence Unit direct authority to investigate suspected unregistered crypto businesses instead of relying mainly on police referrals. Summary South Korean lawmakers have proposed giving the FIU direct powers to investigate unregistered crypto businesses. The FIU could analyze suspected violations, file complaints and request criminal investigations under the bill. Police suspended inquiries into 23 of 25 unregistered crypto operators referred by the FIU between August 2022 and August 2025. The FIU said in June that 28 crypto providers were registered and 40 suspected illegal operators had been referred to authorities. Yonhap reported that People Power Party lawmaker Eom Tae-young and nine other lawmakers filed the amendment on Thursday, proposing new powers under the Act on Reporting and Using Specified Financial Transaction Information, commonly known as the Specific Financial Information Act. Under the bill, any person could report a suspected violation of the law directly to the FIU. Once a report is received, the financial intelligence agency would be allowed to investigate and analyze the susp...