South Korea's FIU Warns Investors Against ‘Guaranteed Returns’ and ‘Global Listing’ Crypto Scams

South Korea’s Financial Intelligence Unit (FIU), under the Financial Services Commission (FSC), has issued a warning over a growing number of illegal virtual asset operators targeting investors through misleading promotions on platforms such as YouTube, Telegram, and KakaoTalk open chat rooms.

The regulator said scammers are increasingly using claims such as “guaranteed high returns,” “principal protection,” “exclusive insider information,” and “upcoming global listings” to attract investors. Authorities warned that such promises are common red flags associated with fraudulent schemes and unauthorized crypto activities.

According to the FIU, only 28 virtual asset service providers (VASPs) are currently registered to operate legally in South Korea. Any platform offering virtual asset trading or brokerage services to domestic residents without FIU registration is considered illegal.

The regulator noted that some operators attempt to evade scrutiny by conducting customer communications in English or concealing their domestic presence while targeting Korean users. Authorities have also identified private exchange services that facilitate stablecoin transactions and convert crypto assets into Korean won for foreign residents, as well as cases where influencers promote overseas exchanges through referral programs in exchange for commissions.

The FIU urged investors to exercise caution when encountering investment offers promising unusually high returns or future token listings and advised against registering through referral links or participating in unverified brokerage activities.

The warning forms part of South Korea’s broader efforts to combat unauthorized crypto activities and strengthen investor protection in the digital asset market.