South Korea's crypto regulation crackdown! 40 unregistered platforms handed over to law enforcement agencies

Korea Financial Intelligence Unit (FIU) reports approximately 40 unregistered virtual asset service providers to law enforcement agencies, revealing the current "unlicensed operation" status of the crypto industry in Korea.
(Background summary: Korea excludes recent easing of crypto regulations: joint review by three agencies)
(Additional context: Korea’s "Donation Act" refuses to accept cryptocurrency donations, except for government-issued stablecoins)

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• Regulatory requirements and risks of unregistration
• Typical violations disclosed by FIU
• Synchronization with Europe: Asian trend of regulatory crackdown

The Financial Intelligence Unit (FIU) under Korea’s Financial Services Commission (FSC) announced on June 24 that about 40 unregistered virtual asset service providers have been officially reported to law enforcement.

Regulatory requirements and risks of unregistration

According to Korea’s "Specific Financial Information Act," platforms engaged in crypto asset business in Korea must obtain Information Security Management System (ISMS) certification and complete registration reporting to FIU. Overseas platforms providing services to Korean users are also subject to these regulations.

Unregistered platforms are not bound by laws such as the "Virtual Asset User Protection Act," and users face the following risks:

• Personal information leaks
• Hacker attacks
• Fund embezzlement
• Platform跑路 (platform跑路)

After losses occur, rights protection and recovery are more difficult.

Typical violations disclosed by FIU

FIU also revealed several typical violations:

• Attracting customers via social media: Operators attract Korean users through channels like Telegram, KakaoTalk but deliberately do not provide Korean language services to evade regulation
• Private currency exchange: Private exchange agencies offer stablecoin and fiat currency exchange services to groups like international students and foreign workers

Synchronization with Europe: Asian trend of regulatory crackdown

On the same day, the European Securities and Markets Authority (ESMA) also called for unauthorized crypto asset service providers to exit the market in an orderly manner as the MiCA transition period ends. Korea’s FIU stated it will continue to collaborate with relevant agencies to strengthen crackdowns on illegal crypto activities and expand joint investigations and regular monitoring mechanisms.

Korea’s recent actions demonstrate that the Asian crypto market’s regulatory framework is shifting from "declaration" to "enforcement." Compared to Taiwan’s Financial Supervisory Commission’s (FSC) declarative stance of "overseas risk assumption," Korea’s FIU has already entered the actual investigation stage—monitoring and collecting data for at least half a year behind the figures of the 40 unregistered platforms.

For Taiwanese users, Korea’s screening method (ISMS certification + FIU registration) offers a reference framework: crypto platforms do not need expensive licenses but must at least complete basic information security certification and registration reporting to operate legally.