South Korea Seeks to Restrict Domestic Access to Two Crypto Operators

South Korea’s Financial Intelligence Unit (FIU) asked the commission on Friday, Oct. 30, to limit domestic access to TetherMax and SuperTrust, extending enforcement against crypto operators suspected of operating without required FIU reports.

The request went to the Broadcasting, Media and Communications Deliberation Commission and sought access restrictions, including service termination where applicable. Aegis Ventures was not included because it has no standalone website or mobile app.

The Digital Asset eXchange Alliance (DAXA) referred Aegis Ventures, TetherMax and SuperTrust for investigation over suspected violations of South Korea’s reporting requirements for virtual-asset businesses. The Act on Reporting and Using Specified Financial Transaction Information applies to overseas operators serving South Korean residents. Operating without the required report can carry up to five years in prison or a fine of up to 50 million won. The FIU has warned that such operators fall outside regulatory oversight and may be used for money laundering.

In a June review, average transaction fees at the investigated operators ranged from 1.5% to 10%. The 10% high end was about 62 times the 0.16% average fee at South Korea’s five largest won-denominated trading platforms.

South Korea previously moved to restrict domestic access to 27 overseas crypto exchanges targeting local users.