South Korea's Financial Intelligence Analysis Unit (FIU) is taking measures against foreign cryptocurrency exchanges like BitMEX and KuCoin over registration issues.
Targeting Crypto Exchanges
International crypto exchanges may face blocked access to their websites in South Korea. This decision is based on the Specific Financial Transaction Information Reporting and Use Act and aims to curb unregulated activities.
Background of Regulatory Actions
South Korea has previously acted against crypto exchanges, especially after the 2017 crypto boom, introducing mandatory protocols to enhance transparency and control.
Market Implications
Stricter regulation might deter some foreign exchanges, affecting market competitiveness, but could also lead to a more secure trading environment. Data suggests that such measures may cause initial volatility but promote long-term market stability.
The tightening of crypto exchange regulations in South Korea could reshape the market landscape, enhancing its security while reducing access to unregistered platforms.
