South Korea's FIU Applies to Block TetherMax and SuperTrust, Two Unregistered Cryptocurrency Operators

On October 30, the Financial Intelligence Unit (FIU) of South Korea applied to the Korea Communications Commission to block domestic access to TetherMax and SuperTrust, two unregistered cryptocurrency operators. On the same day, the Korea Digital Asset Exchange Alliance (DAXA) referred Aegis Ventures, TetherMax, and SuperTrust for investigation, citing violations of the Act on Reporting and Using Specified Financial Transaction Information (the Specific Financial Transaction Act). Aegis Ventures was not included in the blocking application due to the lack of an independent website and app. According to the Specific Financial Transaction Act, unregistered cryptocurrency operations can face imprisonment of up to five years or fines of up to approximately $38,000 (50 million KRW), which also applies to foreign operators targeting South Korean users. The FIU stated that the average transaction fees for the investigated operators range from 1.5% to 10%, reaching up to 62 times the average level of the top five Korean exchanges (0.16%). Currently, the number of cryptocurrency operators referred for investigation due to failure to report to the FIU has increased to 47.

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