South Korea’s Financial Services Commission said it is working with the Korea Communications Standards Commission to restrict access to illegal overseas virtual-asset operators, pushing back on media claims that the issue had been left unresolved because agencies were passing responsibility between each other.
Regulators answer criticism
In a statement released on July 21, the FSC said the Korea Communications Standards Commission and the Financial Intelligence Unit share the view that unregistered overseas crypto operators pose money-laundering risks and create a need for stronger user protection in the domestic market. The commission said concerns about those operators are being handled jointly rather than ignored.
The statement came a day after a local media outlet reported that illegal exchanges were effectively being left unchecked while the two agencies argued over who should handle website access blocking. The FSC directly rejected that characterization, saying neither side had intentionally delayed the review process or tried to avoid responsibility.
How the review process is being handled
According to the FSC, the agencies are moving quickly to identify websites that may be subject to access restrictions. At the same time, it said they are trying to design effective and reasonable measures that do not create unnecessary inconvenience for domestic users’ financial transactions or lead to possible losses of customer assets.
The commission added that documents and other materials needed for the review are being shared sufficiently between the relevant bodies. That point appeared aimed at countering suggestions that the process had stalled because information was not being exchanged properly.
Assembly wording and legal procedures
The FSC also addressed controversy over language used in materials submitted by the Korea Communications Standards Commission to the National Assembly. The wording referred to taking final judgments into account when administrative or judicial procedures are under way.
The FSC said that language should be understood as a general explanation of ordinary review principles, rather than as evidence of reluctance to act against unregistered overseas operators. In other words, the commission indicated that the reference reflected standard procedural guidance, not a signal that enforcement would be postponed indefinitely.
Next steps for enforcement
Looking ahead, the FSC said it plans to strengthen cooperation with investigative authorities so that websites operated by illegal overseas virtual-asset businesses can be blocked in a timely manner when there is objective evidence to support action. The statement did not provide a timetable or identify specific operators that could be targeted.
The dispute highlighted the sensitivity of access-blocking decisions in the crypto sector, where authorities are balancing enforcement against money-laundering risks with efforts to reduce disruption for domestic users. For now, the FSC’s position is that inter-agency coordination is active and that the review process is continuing, despite criticism raised in local media reports.
Source: en.bloomingbit.io