Woofun AI reports that South Korea's Financial Intelligence Unit (FIU) has referred approximately 40 unregistered virtual asset service providers to law enforcement agencies for further action. These entities operate outside the regulatory framework of the 'Virtual Asset User Protection Act' and the 'Specific Financial Transaction Information Reporting and Use Act,' exposing users to significant security vulnerabilities including personal data breaches and hacking attacks.

Furthermore, the lack of oversight increases the risk that these platforms may be exploited for money laundering and concealing criminal funds.