Proposed legislation would allow the FIU to directly investigate and refer unregistered crypto firms to law enforcement.
South Korean lawmakers have introduced a bill to expand the Financial Intelligence Unit’s authority over unregistered cryptocurrency businesses. The proposal would enable the FIU to investigate suspected violations and refer cases directly to law enforcement, bypassing current reliance on police and other agencies.
Under existing rules, the FIU identifies unregistered operators but depends on external authorities to pursue investigations. Data shows police suspended probes into 23 of 25 cases referred by the FIU between August 2022 and August 2025, with most firms reportedly based overseas. The bill remains in the early legislative stage.
The amendment targets firms serving South Korean customers without FIU registration, aiming to close gaps in enforcement. If passed, the new powers could increase regulatory pressure on offshore crypto operators.