South Korea FIU: Requires blocking domestic access for two unreported virtual asset operators

According to current laws, those who operate virtual asset businesses without declaration can be sentenced to a maximum of 5 years in prison or fined 50 million Korean Won. This law also applies to foreign operators targeting Korean residents. The Financial Intelligence Unit (FIU) stated that undeclared operators are in a regulatory blind spot and may be used for money laundering.

In June of this year, DAXA and compliant operators jointly conducted an investigation and found that the average transaction fee of the operators under investigation was between 1.5% and 10%, which is up to 62 times the average level of the top five Korean exchanges (0.16%).