- A bill filed by Eom Tae-young and nine lawmakers would expand FIU authority over unregistered crypto firms.
- The proposal would let the FIU investigate suspected violations and refer cases directly to law enforcement.
South Korea FIU powers over unregistered crypto firms are at the center of a new bill introduced by People Power Party lawmaker Eom Tae-young and nine other lawmakers. Filed on Thursday, the proposal would amend the Act on Reporting and Using Specified Financial Transaction Information by adding a new provision tied to suspected violations. The measure would allow anyone to report potential breaches to the Financial Intelligence Unit, and it would let the agency investigate and analyze those cases. The South Korea FIU proposal is still at the introduction stage and would need National Assembly approval before any change to the current law takes effect.
South Korea FIU bill enters the National Assembly process
A group of South Korean lawmakers has formally introduced legislation aimed at widening the Financial Intelligence Unit’s role in policing unregistered crypto businesses. The bill was filed by Eom Tae-young of the People Power Party along with nine other lawmakers, and it seeks to amend an existing financial law rather than create a separate framework.
The proposed change would add a new provision to the Act on Reporting and Using Specified Financial Transaction Information. At this stage, the measure has only been introduced, which means it must still pass the National Assembly before it can alter the current legal structure that applies to crypto businesses serving South Korean customers.
What the South Korea FIU proposal would change
Under the proposal, suspected violations of the law could be reported to the FIU by anyone. The agency would then be able to investigate and analyze the alleged violations instead of limiting its role to identifying suspicious operators and depending on other bodies to take the next steps.
The bill would also allow the FIU to file complaints with the relevant authorities, request criminal investigations, or provide information directly to investigators. In effect, the South Korea FIU would have a more active role in moving cases involving unregistered crypto operators toward law enforcement action.
Current limits on unregistered crypto firm investigations
Under the current system, the FIU can identify suspected unregistered operators, but it relies on police and other authorities to pursue investigations. That reliance has become a notable issue in the discussion around the proposed law, as the bill is designed to broaden the agency’s authority beyond detection alone.
According to Yonhap, police suspended investigations or preliminary inquiries into 23 of 25 unregistered virtual asset service providers referred by the FIU between August 2022 and August 2025. The companies and related individuals were reportedly based overseas, a detail that appeared in the reported figures tied to those referrals.
Registration data and enforcement figures
Crypto companies that serve South Korean customers are required to register with the FIU. The regulator said in June that 28 providers were registered, offering a snapshot of the currently registered part of the market under the existing compliance framework.
The same regulator also said it had referred 40 suspected illegal operators to investigative authorities. Those figures help frame why lawmakers are seeking broader powers for the South Korea FIU, as the proposal focuses on how suspected illegal activity can be examined and forwarded for criminal investigation.
Conclusion
The new South Korea FIU bill would give the agency wider authority to handle suspected violations involving unregistered crypto firms, including the ability to investigate, analyze, file complaints, request criminal probes, and share information with investigators. Introduced by Eom Tae-young and nine other lawmakers, the measure would amend the Act on Reporting and Using Specified Financial Transaction Information if it passes the National Assembly. The proposal comes as the current system leaves the FIU dependent on police and other authorities after identifying suspected operators, while official data cited in the report shows both the scale of referrals and the limits of follow-up under the existing framework.
Disclaimer
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