South Korea FIU Seeks to Block Domestic Access to TetherMax and SuperTrust

South Korea’s Financial Intelligence Unit (FIU) has asked the Korea Communications Standards Commission to block domestic access to TetherMax and SuperTrust, which it says operated without registration. According to Foresight News, the FIU announced the request on Oct. 30, citing a Yonhap report. The same day, the Digital Asset eXchange Alliance (DAXA) referred Aegis Ventures, TetherMax and SuperTrust for investigation over suspected unregistered cryptocurrency operations in violation of the Act on Reporting and Using Specified Financial Transaction Information. Aegis Ventures was not included in the blocking request because it has no independent website or app. The law allows penalties of up to five years in prison or a fine of up to 50 million won, about $38,000, for operating a cryptocurrency business without registration. The requirement also applies to overseas operators serving South Korean users. The FIU said the operators under investigation charged average transaction fees of 1.5% to 10%, with the highest rate 62 times the 0.16% average at South Korea’s five largest won-based exchanges. The number of cryptocurrency operators referred to investigative authorities for failing to register with the FIU has reached 47.