South Korean financial authorities are taking action against foreign crypto exchanges like BitMEX and KuCoin for offering services without proper registration.
Current Sanctions
South Korea is considering sanctions against foreign exchanges providing services without registration under the Specific Financial Information Act. Consultations with the Korea Communications Standards Commission are underway.
Targeted Exchanges
Exchanges such as BitMEX, KuCoin, CoinW, Bitunix, and KCEX are under scrutiny for serving Korean users unlawfully. The law mandates registration with the FIU for crypto trading or custody services, with penalties for non-compliance.
History of Past Actions
In 2022, the FIU requested the blocking of 16 foreign exchanges, including KuCoin and Poloniex. The number of registered crypto trading firms in South Korea fell by 26% in 2023, due to difficulties in registration renewal.
South Korea continues to tighten control over the cryptocurrency market to ensure security and legality of operations within the country.
