South Korea’s Financial Intelligence Unit has requested domestic access restrictions on two unregistered cryptocurrency businesses and referred three operators for investigation over suspected violations of the country’s financial laws.
Summary
- South Korea’s Financial Intelligence Unit has requested domestic access restrictions on TetherMax and SuperTrust after the two platforms were identified as suspected unregistered cryptocurrency operators.
- DAXA has referred TetherMax, SuperTrust and Aegis Ventures for investigation, bringing the total number of unregistered crypto businesses reported to investigative authorities to 47.
- Aegis Ventures was excluded from the website blocking request because it does not operate a separate website or mobile application, although it remains among the businesses referred for investigation.
- A June inspection found that unregistered crypto operators charged trading fees ranging from 1.5% to 10%, with the highest rates reaching approximately 62 times the average charged by South Korea’s five largest won exchanges.
According to an Oct. 30 report from Yonhap News Agency, the Financial Intelligence Unit (FIU), which operates under the Financial Services Commission, has asked the country’s communications review authority to block access to TetherMax and SuperTrust, including their online services.
The request followed a referral by the Digital Asset Exchange Alliance (DAXA), which identified TetherMax, SuperTrust and Aegis Ventures as suspected unregistered virtual asset service providers.
Aegis Ventures was excluded from the access blocking request because it does not operate a separate website or mobile application. However, all three businesses have been referred to investigative authorities over their suspected operations without the required registration.
With the latest referrals, the total number of unregistered crypto businesses reported to investigative agencies by the FIU has reached 47.
South Korea targets unregistered crypto firms under existing laws
Under South Korea’s Specific Financial Information Act, businesses that provide cryptocurrency services to local customers must register with the FIU before operating.
The requirement applies to domestic companies and foreign platforms that serve South Korean residents, even when their businesses are based outside the country.
Operators found guilty of conducting unregistered virtual asset activities can face up to five years in prison or fines of up to 50 million won.
The latest action remains a request for access restrictions, with the communications review authority responsible for deciding whether to implement the proposed blocks.
South Korean authorities have already taken similar measures against several foreign cryptocurrency exchanges that continued offering services to local customers without completing the required registration process.
Earlier this month, the FIU ordered access restrictions on 27 crypto websites, including those operated by KuCoin, MEXC and BingX, following regulatory reviews conducted on Oct. 6 and 7.
At the time, authorities had reported 44 unregistered cryptocurrency operators to investigative agencies. The three newly identified businesses have now brought that number to 47.
The October restrictions followed earlier measures against overseas trading platforms whose applications were available through domestic app stores despite their lack of registration.
FIU flags high trading fees and money laundering risks
Alongside the enforcement action, the FIU raised concerns about the fees charged by unregistered cryptocurrency businesses and the risks associated with using platforms outside its supervision.
A joint inspection conducted by DAXA and registered virtual asset service providers in June found that the businesses examined charged average trading fees ranging from 1.5% to 10%.
By comparison, the five largest South Korean cryptocurrency exchanges offering Korean won trading pairs charged an average fee of approximately 0.16%.
At the upper end of the range, the fees identified during the inspection were approximately 62 times higher than the average charged by those domestic exchanges.
The FIU warned that unregistered cryptocurrency operators could be exploited for money laundering because they operate outside the regulatory oversight applied to registered businesses.
As crypto.news previously reported, the regulator had identified around 40 suspected unregistered operators by June and warned customers about potential fraud, hacking and personal data risks.
Some overseas platforms were found to be approaching Korean customers through Telegram and KakaoTalk, while other businesses offered private cryptocurrency exchange services involving stablecoins and fiat currencies.
Authorities said certain operators used online communities and promotional channels to reach local customers without maintaining the same public presence as registered exchanges.
Regulators have expanded restrictions on foreign crypto platforms
South Korea has introduced several measures over the past year to restrict access to cryptocurrency businesses that have not registered with the FIU.
In July, OKX returned to Google’s Play Store in South Korea after a four-day suspension, while Bybit’s application remained unavailable to local users.
The restrictions followed Google’s requirements for cryptocurrency exchange and wallet applications distributed in South Korea to comply with local virtual asset service provider registration rules.
Separately, the country tightened its cryptocurrency transfer requirements in August, introducing additional obligations for registered businesses handling transactions involving overseas virtual asset providers.
The measures require covered businesses to collect and verify information associated with cryptocurrency transfers, with receiving providers able to request missing details or reject transfers when the required information cannot be verified.
Meanwhile, South Korean lawmakers introduced a proposal in August to give the FIU direct investigative powers over suspected unregistered cryptocurrency businesses.
The proposed amendment would allow the agency to examine suspected violations and request criminal investigations, instead of relying primarily on referrals to police.
The proposal followed concerns about the handling of earlier referrals, after police suspended investigations into 23 of 25 unregistered crypto operators referred by the FIU between August 2022 and August 2025.
For its latest enforcement action, the FIU said it plans to request faster reviews of newly identified operators and replacement websites used by businesses attempting to continue serving Korean customers.
The agency intends to expand public access to lists of registered virtual asset service providers and unregistered businesses reported to investigative authorities.
