South Korea Targets Unregistered Crypto Firms as Tally Reaches 47

The regulatory action, prompted by the Digital Asset Exchange Alliance, targets firms operating without the mandatory registration required by the Specific Financial Information Act. While TetherMax and SuperTrust face potential website blocks, a third entity, Aegis Ventures, was spared the access restrictions as it lacks a standalone web presence. Regardless, all three remain under investigation for allegedly bypassing oversight required of virtual asset service providers.

Regulators have expressed alarm over the predatory nature of these unregistered platforms. A June inspection revealed that these operators impose trading fees between 1.5% and 10%—rates up to 62 times higher than the 0.16% average found on the country’s five major won-based exchanges. Beyond the financial costs, the Financial Intelligence Unit warns that these platforms function in a legal vacuum, creating significant vulnerabilities for money laundering, fraud, and data theft. The government is currently weighing legislative amendments that would grant the agency direct investigative powers, aiming to bypass the delays currently hampering police-led inquiries into these unlicensed operations.