South Korean Lawmakers Push Bill to Expand FIU Power Over Unregistered Crypto Firms

A group of South Korean lawmakers has introduced legislation aimed at strengthening the Financial Intelligence Unit’s authority to investigate unregistered cryptocurrency businesses. The bill, filed by People Power Party lawmaker Eom Tae-young along with nine other lawmakers, proposes adding a new provision to the country’s financial transaction reporting law.

What the Bill Would Change

Under the proposal, any individual could report suspected violations directly to the FIU. The agency would then gain the ability to investigate and analyze these reports, file complaints with relevant authorities, request criminal investigations, and share findings with law enforcement. Currently, the FIU can identify suspected unregistered operators but must rely on police and other agencies to carry out investigations.

A System Struggling With Enforcement

Data shows police suspended investigations into 23 of 25 unregistered virtual asset providers referred by the FIU between August 2022 and August 2025, with most companies based overseas. As of June, only 28 providers were officially registered with the FIU, which had referred 40 suspected illegal operators to investigators. The bill must still pass South Korea’s National Assembly before becoming law.