Proposal to Grant FIU Authority to Regulate Unreported Virtual Asset Businesses
A proposal to amend the Specific Financial Information Act to grant the Financial Intelligence Unit (FIU) the authority to regulate unreported virtual asset businesses has been introduced. On the 20th, ten members of the National Assembly, including Rep. Eom Tae-young of the People Power Party, submitted this amendment. The amendment specifies that anyone can report violations of the Specific Financial Information Act to the head of the FIU, and that the FIU head can take necessary measures such as investigation and analysis if a report is made or if there are recognized suspicions of violations. Additionally, it includes the authority to file complaints with the relevant investigative agencies or provide necessary information. Current laws impose reporting obligations and anti-money laundering duties on virtual asset businesses, but there are criticisms that the FIU cannot directly regulate unreported businesses such as 'coin private exchange offices,' limiting effective responses. Unreported businesses are at risk of being exploited for crimes such as money laundering, currency exchange fraud, and illegal overseas remittances, but there are also concerns that the structure relies on cooperation between relevant agencies or requests for investigations, making rapid responses difficult.
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