The Korea Financial Intelligence Unit (FIU), part of South Korea’s Financial Services Commission, has requested domestic access restrictions on the websites and mobile apps of TetherMax and SuperTrust for operating without registration. The two operators, along with Aegis Ventures, were referred for investigation by the Digital Asset Exchange Alliance (DAXA). Aegis Ventures has no website or mobile app for its unregistered business, so no blocking request was necessary. Any restrictions remain subject to the procedures of the Broadcasting, Media and Communications Standards Commission. Under existing law, conducting an unregistered virtual asset business carries penalties of up to five years in prison or a fine of up to KRW 50 million. The requirements also apply to overseas operators serving South Korean customers. Registered virtual asset service providers must cease transactions with unregistered operators. The FIU currently has 28 registered virtual asset service providers. Users should verify registration before trading and immediately withdraw their virtual assets and deposits if a provider is found to be unregistered. Referral activity that assists an unregistered business can also expose referrers to criminal penalties. Further measures will include requests for prompt review of newly identified operators and replacement websites, alongside expanded publication of registered providers and unregistered operators referred to investigators.
South Korea’s Financial Services Commission seeks access blocks on two unregistered virtual asset operators
South Korea’s Financial Services Commission, through its Financial Intelligence Unit, has sought domestic access restrictions on TetherMax and SuperTrust after DAXA referred three unregistered virtual asset operators for investigation. The third operator, Aegis Ventures, has no relevant website or app, while restrictions on the other two remain subject to the broadcasting regulator’s procedures. Existing law requires registered providers to stop dealing with unregistered operators and imposes criminal penalties for unregistered activity, including by overseas businesses serving South Korean customers.