South Korean Lawmakers Move to Expand FIU Powers Over Unregistered Crypto Firms

South Korean lawmakers want to give the country’s financial intelligence agency a more direct role in policing unregistered cryptocurrency firms, a change that follows years of suspended investigations into overseas operators. If enacted, the amendment would mark a notable shift in how the country enforces its crypto registration regime.

What the Proposed Bill Would Do

A group of South Korean lawmakers has introduced legislation that would expand the Financial Intelligence Unit’s (FIU) authority to investigate unregistered cryptocurrency businesses. People Power Party lawmaker Eom Tae-young and nine other lawmakers filed the bill on Thursday, aiming to add a new provision to the Act on Reporting and Using Specified Financial Transaction Information, according to CoinTelegraph.

Under the proposal, anyone could report suspected violations of the law to the FIU. The agency would then be able to investigate and analyze alleged violations, file complaints with the relevant authorities, request criminal investigations, or provide information to investigators. The measure is designed to give the regulator a clearer path to acting on tips about illegal operators rather than waiting on other agencies.