South Korea Cracks Down on Unregistered Overseas Crypto Exchanges

South Korea has launched a crackdown on unregistered overseas crypto exchanges operating in the country, including KuCoin, BitMEX, CoinW, Bitunix, and KCEX.

The Financial Intelligence Unit (FIU) has identified several crypto exchanges operating in South Korea without registration. These platforms include BitMEX, KuCoin, CoinW, Bitunix, and KCEX.

According to Chainalysis data, North Korea hackers stole $625 million in crypto from DeFi protocols in 2022.

South Korea’s crypto regulatory efforts have seen the Financial Intelligence Unit (FIU) cracking down on multiple crypto exchanges for illegally operating in the country without registration.

These platforms include BitMEX, KuCoin, CoinW, Bitunix, and KCEX. The exchanges have reportedly failed to register as virtual asset service providers (VASPs) in accordance with the Specific Financial Information Act.

Moreover, they have been found to be operating Korean websites, targeting local investors with marketing and customer support, again without proper registration or disclosure.

These findings have sparked increased scrutiny over these crypto exchanges. An FIU official revealed that the regulator is currently analyzing measures to block access to these crypto exchanges.

“We are currently reviewing access blocking measures for unreported overseas exchanges that are providing services to domestic investors through consultation with the Korea Communications Standards Commission,” the representative stated.

The official further added, “We are organizing damage cases and related data to strengthen communication between the authorities, and we expect to take tangible measures within this year.”

Kucoin and Other Major Exchanges Targeted for Sanctions

According to local reports, top crypto exchange KuCoin is under scrutiny for violating licensing regulations. Other platforms that are currently deemed by the South Korean regulator as illegally offering services include BitMEX, CoinW, Bitunix, and KCEX.

As these exchanges have failed to adhere to proper regulatory norms, the FIU targets them for sanctions. Notably, the financial watchdog has initiated procedures to take proper actions against these crypto exchanges.

With intense scrutiny, the FIU is consulting with relevant organizations to proceed further. This development follows the nation’s recent rejection of the notion of a strategic Bitcoin reserve.

The Bank of Korea has dismissed the possibility of adopting a crypto reserve citing its volatile nature and inherent risks. In addition, the Bank of Korea is experimenting with its CBDC project.

The central bank will launch a CBDC pilot program in April, possibly lasting for three months. South Korea’s crypto regulations have seen the Financial Intelligence Unit (FIU) cracking down on multiple crypto exchanges for illegally operating in the country.

These platforms include BitMEX, KuCoin, CoinW, Bitunix, and KCEX. The exchanges have reportedly failed to register as virtual asset service providers (VASPs) in accordance with the Specific Financial Information Act.

According to Chainalysis data, North Korea hackers stole $625 million in crypto from DeFi protocols in 2022.

The crypto exchanges have been found to be opening Korean websites, providing customer support in the local language, and engaging in marketing activities to target South Korean investors.

However, they lack the necessary registration to offer services in the country. These findings have sparked increased scrutiny over these crypto exchanges. An FIU official revealed that the regulator is currently analyzing measures to block access to these crypto exchanges.

“We are currently reviewing access blocking measures for unreported overseas exchanges that are providing services to domestic investors through consultation with the Korea Communications Standards Commission,” the representative stated.

The official further added, “We are organizing damage cases and related data to strengthen communication between the authorities, and we expect to take tangible measures within this year.”

Kucoin and Other Major Exchanges Targeted for Sanctions

According to local reports, top crypto exchange KuCoin is under scrutiny for violating licensing regulations. Other platforms that are currently deemed by the South Korean regulator as illegally offering services include BitMEX, CoinW, Bitunix, and KCEX.

As these exchanges have failed to adhere to proper regulatory norms, the FIU targets them for sanctions. Notably, the financial watchdog has initiated procedures to take proper actions against these crypto exchanges.

With intense scrutiny, the FIU is consulting with relevant organizations to proceed further. This development follows the nation’s recent rejection of the notion of a strategic Bitcoin reserve.

The Bank of Korea has dismissed the possibility of adopting a crypto reserve citing its volatile nature and inherent risks. In addition, the Bank of Korea is experimenting with its CBDC project.

The central bank will launch a CBDC pilot program in April, possibly lasting for three months.