South Korea FIU Seeks to Block Domestic Access to Two Unreported Virtual Asset Operators

South Korea’s Financial Intelligence Unit (FIU) has called for domestic access to be blocked for two unreported virtual asset operators. According to ChainCatcher, operators conducting virtual asset business without filing under current law face up to five years in prison or a fine of up to 50 million won; the law also applies to overseas operators serving South Korean residents. The FIU said unreported operators fall outside regulatory oversight and could be used for money laundering. In June, an investigation by the Digital Asset eXchange Alliance (DAXA) and compliant operators found that the investigated platforms charged average trading fees of 1.5% to 10%, with the highest rate about 62 times the 0.16% average at South Korea’s five largest won-based exchanges.