Freeze authority expanded: South Korea proposes allowing financial authorities to suspend payments from suspicious crypto accounts

Odaily reported that Kim Sang-hoon and 14 other lawmakers of the South Korean People Power Party proposed an amendment to the Specific Financial Information Act on July 28, which would allow financial authorities to request the suspension of payments from virtual asset accounts suspected of being used for illegal asset transfers. The amendment defines an "account" as a unique identification number provided by exchanges to users. The Financial Intelligence Unit (FIU) can request a 30-day suspension of payments if it deems an account suspicious, which can be extended once. Individuals or entities that fail to comply face a maximum fine of 100 million KRW. The bill will take effect six months after its promulgation.