South Korea FIU requested that domestic access to TetherMax and SuperTrust be blocked,DAXA referring 3 agencies for investigation
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AT A GLANCE
South Korea FIU requested that two undeclared virtual asset operators be blocked,DAXA and referred three entities for investigation.
Article
【South Korea FIU demands that domestic access to two undeclared virtual asset operators be blocked,DAXA refers 3 agencies for investigation】
South Korea’s Financial Intelligence Unit (FIU）October 30 requested that the Korea Communications Standards Commission block domestic access to two undeclared virtual asset operators, including termination of services. On the same day, the Digital Asset Exchange Alliance (DAXA) referred Aegis Ventures, TetherMax, and SuperTrust for investigation on suspicion of violating the Act on Reporting and Using Specified Financial Transaction Information and operating a virtual asset business without filing a report.FIU requested that access to TetherMax and SuperTrust be blocked. Aegis Ventures has no independent website or mobile application and was therefore not included in the blocking request. Under current law, those operating a virtual asset business without filing a report may face up to 5 years’ imprisonment or a fine of 50000000 Korean won. The law also applies to overseas operators serving South Korean residents.FIU said that undeclared operators are in a regulatory blind spot and could be used for money laundering. This year,June，DAXA and compliant operators conducted a joint focused investigation and found that the average trading fees of the operators identified ranged from 1.5%to 10%, with the highest being approximately 0.16%times the average level of South Korea’s five largest KRW exchanges (62).
Key points
01
South Korea’s Financial Intelligence Unit (FIU）October 30 requested that the Korea Communications Standards Commission block domestic access to TetherMax and SuperTrust, with the request including termination of services.
02
Digital Asset Exchange Alliance (DAXA) referred Aegis Ventures, TetherMax, and SuperTrust for investigation that day on suspicion of violating the Act on Reporting and Using Specified Financial Transaction Information and operating a virtual asset business without filing a report.
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Aegis Ventures was not included in the blocking request because it has no independent website or mobile application.
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Under current law, those operating a virtual asset business without filing a report may face up to 5 years’ imprisonment or a fine of 50000000 Korean won; the law also applies to overseas operators serving South Korean residents.
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FIU It said that undeclared operators are in a regulatory blind spot and could be used for money laundering.
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The materials state that, this year,June a joint focused investigation by 1.5%found that the average trading fees of the operators identified ranged from 10%to 0.16%with the highest being approximately 62 times the average level of South Korea’s five largest KRW exchanges.
AI-assisted interpretation
The following is analysis, separate from reported facts. Verify important claims independently.
FIU believes that operators providing virtual asset services to South Korean residents must file a report in accordance with the law. In this case, three entities were referred for investigation; TetherMax and SuperTrust were also subject to requests to restrict access in South Korea, while Aegis Ventures was not included in the blocking request because it has no independent website or mobile application.
Why it matters to readers
If the blocking request is implemented, users in South Korea may be unable to access TetherMax and SuperTrust or use their services. The incident also shows that virtual asset operators serving South Korean residents without filing a report face risks of investigation, access restrictions, and criminal penalties.
Beginners should check whether the platform they use has filed the required report and whether access or services could be interrupted. “Referred for investigation” and “requested to block” in the materials do not mean that a conviction has already been obtained or that blocking has already been completed.
Risks and unknowns
The evidence does not indicate whether the Korea Communications Standards Commission has implemented the blocking request.
The evidence does not provide FIU、DAXA the original announcement from the Korea Communications Standards Commission or the commission itself; the report still requires confirmation against official documents.
Whether the three entities violated the law, the investigation results, and any subsequent penalties have not yet been stated.
Related Developments
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FIU The statement that undeclared operators could be used for money laundering is a risk description; the evidence does not indicate that the three entities have been used for money laundering.
It remains unclear whether the entities involved have responded, filed the required reports, taken corrective action, or appealed.
Related concepts
FIU
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