FSC Says It Is Working Closely With Review Board to Block Illegal Overseas Crypto Operators

South Korea’s Financial Services Commission said it is working closely with the Korea Communications Standards Commission to block access to illegal overseas virtual-asset operators.

In a statement released July 21, the FSC said the Korea Communications Standards Commission and the Financial Intelligence Unit share concerns about the money-laundering risks posed by unregistered overseas crypto operators and the need to protect domestic users. It added that neither agency had deliberately delayed the review process or tried to avoid responsibility.

A local media outlet reported on July 20 that illegal exchanges were being left unchecked while the two agencies shifted responsibility to each other over access blocking.

The FSC said the two agencies are moving quickly to identify websites subject to access restrictions while seeking effective and reasonable measures to avoid inconvenience to domestic users’ financial transactions or potential losses to their assets. Materials needed for the review are also being shared sufficiently, it said.

The commission also said wording in materials submitted by the Korea Communications Standards Commission to the National Assembly about considering final judgments when administrative or judicial procedures are under way was a general explanation of standard review principles.

The FSC said it will strengthen cooperation with investigative authorities so access to websites run by illegal overseas virtual-asset operators can be blocked in a timely manner based on objective evidence.