title: Korea Financial Intelligence Unit (FIU) Takes Action Against Overseas Cryptocurrency Exchanges Operating Illegally in Korea

The Korea Financial Intelligence Unit (FIU) is taking action against overseas cryptocurrency exchanges operating illegally in Korea. The unregistered exchange operations provide services to Korean users

The Korea Financial Intelligence Unit (FIU) is targeting four cryptocurrency exchanges—BitMEX, CoinW, KuCoin and Bitunix—for allegedly operating in the country without registration.

The unregistered exchange operations provide services to Korean users and take customer support calls in the local language.

The FIU is also discussing with the Korea Communications Standards Commission how to block the platforms’ access.

The post Korea FIU Starts Building Sanctions Against Unregistered Crypto Exchanges appeared first on CC Chain.

Korea’s financial intelligence unit (FIU) is targeting four cryptocurrency exchanges for allegedly operating in the country without registration.

According to a report by Korea Economic Daily, the FIU is discussing imposing sanctions against BitMEX, CoinW, KuCoin and Bitunix.

The news comes after the Korea Blockchain Content Association (KBCCA) members met on Thursday to discuss the difficulties they face in cooperating with government agencies.

The association members pointed out that the Financial Services Commission (FSC) and FIU are focusing only on virtual asset service providers (VASPs) and neglecting to cooperate with organizations working to promote blockchain content.

The KBCCA members also pointed out that despite the amendment of the Special Financial Transactions Act (SFTA) in 2021 to include virtual assets and related businesses, relevant government agencies still lack an understanding of blockchain and related businesses.

This lack of understanding creates difficulties for organizations like KBCCA in cooperating with government agencies effectively.

Unregistered crypto exchange operations in Korea are an ongoing issue.

In April 2022, the FIU said 16 foreign crypto exchanges had stopped operating in the country after failing to register.

At the time, the agency also partnered with local credit card companies to halt platform users from making cryptocurrency purchases.

The exchanges also decided to withdraw from the Korean market and stopped providing services to new users.

The authorities are now stepping up efforts to rein in unruly crypto platforms.

The implementation of sanctions by the FIU could push additional exchanges to comply with Korean regulations or wind down their operations in the local market.

This signals a significant initiative by the country to protect investors and its commitment to ensuring all cryptocurrency platforms adhere to legal frameworks.