South Korea's Financial Intelligence Unit (FIU) has begun enforcing measures against several international cryptocurrency exchanges for operating without proper registration.
Penalties for Unregistered Operations
According to local reports, exchanges such as BitMEX, KuCoin, CoinW, Bitunix, and KCEX are accused of violating South Korea’s anti-money laundering (AML) and financial regulations by operating without the necessary approvals. Unregistered platforms are considered illegal operators and could face serious penalties, including access restrictions and criminal charges.
South Korea's Strict Crypto Measures
The move is in line with South Korea's broader regulatory crackdown on the cryptocurrency industry, aimed at protecting investors and preventing financial crimes. Authorities have taken similar steps in the past, including delisting non-compliant exchanges and tightening AML enforcement on both domestic and foreign trading platforms.
FIU's Cooperation with KCSC
To ensure compliance, the FIU is working with the Korea Communications Standards Commission (KCSC) to block website access to blacklisted exchanges, preventing South Korean users from trading on these platforms.
The FIU's latest actions signal a firm stance against unregulated cryptocurrency activities in South Korea, despite uncertainties regarding the timeline for sanctions and website restrictions.
