South Korea has referred about 40 unregistered virtual asset service providers to law enforcement.

BlockBeats News, June 24th. According to the Financial Intelligence Unit (FIU) under the Financial Services Commission (FSC) of South Korea, about 40 unregistered virtual asset service providers have been reported to law enforcement agencies.

Under the South Korean Specific Financial Information Act, platforms operating cryptocurrency businesses in South Korea are required to obtain Information Security Management System (ISMS) certification and complete registration with the FIU. The same regulations apply to overseas platforms that provide services to South Korean users. Unregistered platforms are not bound by regulations such as the Virtual Asset User Protection Act, exposing users to risks such as personal information leakage, hacking attacks, fund misappropriation, and exit scams. In the event of losses, the difficulty of rights protection and recovery is significantly increased.

In addition, the FIU also disclosed various typical illegal activities, including attracting South Korean users through channels like Telegram and KakaoTalk but deliberately not providing services in Korean to evade regulation. Private money changers were also found to provide stablecoin to fiat exchange services to groups such as international students and foreign workers.

South Korean authorities stated that they will continue to collaborate with relevant agencies to strengthen the crackdown on illegal cryptocurrency activities and expand joint investigations and routine monitoring mechanisms.