The Financial Intelligence Unit (FIU), under the Financial Services Commission, announced that it has requested the Korea Communications Standards Commission to block domestic access (including service termination) to two unregistered virtual asset service providers.

According to the FIU, the Digital Asset Exchange Alliance (DAXA) requested investigations today (October 30) into Aegis Ventures, Tethermax, and Super Trust on charges of operating unregistered virtual asset businesses in violation of the Act on Reporting and Using Specified Financial Transaction Information (Specialized Financial Information Act).

The FIU requested the Korea Communications Standards Commission to block domestic access to Tethermax and Super Trust.

Aegis Ventures was excluded from the access-blocking request as it operates without a separate website or mobile application.

Under the current Specialized Financial Information Act, operating an unregistered virtual asset business is punishable by up to five years in prison or a fine of up to 50 million won.

The Act applies equally to overseas operators targeting Korean nationals.

The FIU emphasized that "unregistered virtual asset service providers fall within blind spots of regulation and supervision, making them vulnerable to being exploited for money laundering."

In fact, a joint intensive investigation by DAXA and registered service providers in June showed that the average transaction fee of these caught entities ranged from 1.5% to 10%, which is up to 62 times the average fee (0.16%) of South Korea's top five won-based exchanges.

With this latest action, the number of unregistered virtual asset providers referred to investigative authorities for failing to report to the FIU has increased to 47.

The FIU stated, "We will actively pursue anti-money laundering and user protection measures by promptly requesting reviews of newly detected entities and alternative websites, as well as expanding the disclosure of lists of reported service providers and illegal entities referred to investigative authorities."

(Photo: Screenshot of the Financial Intelligence Unit website, Yonhap News)