South Korea's FIU Slows Virtual Asset Market Expansion, Approves Only 2 VASPs in 2025
Written by Ohris M. Greyoon, Blockchain & Crypto Expert
Source: Coinmarketcap
Updated: Jan 04 2026- Approval Numbers Plummet: In 2025, South Korea's Financial Intelligence Unit approved only 2 virtual asset service providers (VASPs), a significant drop from 4 in 2024, indicating a tightening regulatory environment that may dampen market activity.
- Extended Approval Times: The average approval period increased from 11 months in 2024 to 16 months in 2025, causing delays for many virtual asset projects and hindering overall industry growth.
- Increased Penalties: Dunamu was fined 35.2 billion won for anti-money laundering violations, reflecting the regulatory body's heightened focus on compliance, which may lead other firms to adopt more cautious operational strategies.
- Surge in Suspicious Transactions: Between January and August 2025, VASPs filed 36,684 suspicious transaction reports, surpassing the combined totals for 2023 and 2024, indicating heightened market risks that could prompt stricter regulatory actions.
About the author
Ohris M. Greyoon
Ohris M. Greyoon holds a Master’s in Computer Science from MIT and has 10 years of experience in blockchain technology and cryptocurrency markets. A pioneer in decentralized finance (DeFi) analysis, he leads Intellectia’s Crypto News, offering cutting-edge insights into digital assets.
