South Korean financial regulators are considering blocking access to cryptocurrency exchanges operating without the necessary license. Regulations require all crypto exchanges in the country to register as virtual asset service providers.
Korean Regulators and Crypto Exchanges
According to local sources, the Financial Intelligence Unit (FIU) is investigating exchanges for compliance with regulatory requirements and potential access blocking. The regulator is in consultation with other agencies, including the Korea Communications Standards Commission, to determine measures for restricting access. Platforms under scrutiny include major exchanges like KuCoin.
Crypto Exchanges' Response to Inspections
Representatives of the major cryptocurrency exchange KuCoin have stated that they are closely monitoring regulatory changes and remain committed to regulatory compliance, which they believe is crucial for the sustainable growth of the industry.
Inspection of Local Crypto Exchanges
In addition to international platforms, South Korean exchanges have also come under scrutiny. Recently, prosecutors raided Bithumb over alleged embezzlement of funds by a former CEO. There are also rumors of bribes for project listings on Bithumb and Upbit.
Tighter regulations in South Korea indicate the authorities' intention to ensure transparency and legality in cryptocurrency transactions in the country. Such measures could significantly impact exchange operations and their obligations to clients.
