South Korean financial authorities are intensifying their efforts to regulate the cryptocurrency market by planning sanctions against crypto exchanges operating illegally within the country. According to a report by business newspaper Hankyung, the Financial Intelligence Unit (FIU) has classified several exchanges that are not registered as Virtual Asset Service Providers (VASPs) as targets for impending sanctions.
The exchanges identified in this crackdown include BitMEX, KuCoin, CoinW, Bitunix, and KCEX. These platforms have been found to be operating Korean-language websites, yet they have failed to report their activities to the FIU, thereby categorizing them as illegal businesses under the country’s regulations.
An official from the FIU stated, “We are currently reviewing blocking access to unreported overseas exchanges that are providing services to domestic investors through consultation with the Korea Communications Standards Commission.” This is a clear indication of the authorities’ commitment to safeguard the interests of investors in the rapidly evolving crypto landscape.
Furthermore, the FIU is in the process of collecting data on potential damage cases related to these unregistered exchanges, aiming to enhance communication and collaboration between regulatory bodies. As stated by the official, “We expect to see tangible measures taken within this year,” highlighting the urgency of the situation.
Interestingly, major players like BitMEX, KuCoin, and CoinW did not respond to inquiries from CoinDesk regarding the matter, raising questions about their compliance and future operations in South Korea.
This announcement comes on the heels of previous regulatory actions, such as the recent prohibition imposed on the South Korean crypto exchange Upbit, which was barred from allowing new customers to transfer assets to its platform for three months due to non-compliance with regulatory obligations.
For further reading on related developments in the South Korean crypto space, explore: Crypto Exchange Bithumb Raided by South Korean Prosecutors Over Embezzlement Allegations.
