The Korea Financial Intelligence Unit (FIU) has referred around 40 unregistered virtual asset service providers to law enforcement, according to a report by PANews on June 24. These entities are not compliant with South Korea's Virtual Asset User Protection Act or the Act on Reporting and Use of Specific Financial Transaction Information, exposing them to risks such as data breaches and hacking. The unregistered status of these firms raises concerns about their potential use in money laundering and concealing criminal funds. The FIU's action underscores the South Korean government's ongoing efforts to regulate the cryptocurrency sector and ensure compliance with financial laws.