South Korean monetary authorities are intensifying efforts to clamp down on unregistered abroad crypto exchanges working illegally within the nation.
In line with native reviews on March 21, the Monetary Intelligence Unit (FIU) of the Monetary Companies Fee has begun concentrating on a number of overseas platforms which were offering providers to Korean customers with out registering as Digital Asset Service Suppliers (VASPs) underneath the Particular Monetary Info Act.
South Korea’s FIU Targets BitMEX, KuCoin
Per the report, the FIU has recognized crypto exchanges reminiscent of BitMEX, KuCoin, CoinW, Bitunix, and KCEX as a part of its investigation.
These platforms reportedly supply Korean-language web sites, advertising and marketing efforts, and buyer assist concentrating on native buyers—all with out complying with Korea’s VASP registration necessities.
Beneath present legislation, any entity concerned in digital asset buying and selling, custody, or brokerage in South Korea should formally register with the FIU.
Non-compliance is taken into account unlawful and may end up in legal penalties and administrative sanctions.
Authorities are actually contemplating blocking entry to those platforms as a possible enforcement measure.
The FIU is in session with the Korea Communications Requirements Fee (KCSC) to implement web site blocks and additional restrict the exchanges’ skill to function within the nation.
This isn’t the primary time South Korea has acted towards unauthorized crypto corporations.
In 2022, the FIU requested the KCSC to dam entry to 16 unregistered overseas exchanges and labored with home bank card corporations to forestall cryptocurrency-related transactions.
These efforts led many exchanges to withdraw from the Korean market and halt new person registrations.
An FIU official acknowledged that injury circumstances are being collected and inter-agency communication is being strengthened.
“We’re presently reviewing blocking entry to unreported abroad exchanges which are offering providers to home buyers by means of session with the Korea Communications Requirements Fee,” the official reportedly mentioned.
“We’re organizing injury circumstances and associated information to strengthen communication between authorities, and we count on to see tangible measures taken inside this yr.”
Korean Prosecutors Raid Bithumb
Earlier this week, South Korean prosecutors launched a proper investigation into Bithumb, one of many nation’s largest cryptocurrency exchanges, over allegations that firm funds have been misused to facilitate an residence buy for its former CEO.
The Seoul Southern District Prosecutors’ Workplace additionally executed a search and seizure operation at Bithumb’s headquarters in Yeoksam-dong.
Authorities suspect that Bithumb offered a 3 billion Korean received (roughly $2.4 million) lease deposit for an residence in Seongsu-dong to its former CEO and present advisor, Kim Dae-sik.
In line with YTN，South Korean prosecutors right now performed a raid on the headquarters of the cryptocurrency trade Bithumb, investigating allegations that the corporate misused funds to assist the acquisition of a private residence for its former CEO. The case was referred by the…
— Wu Blockchain (@WuBlockchain) March 20, 2025
Final yr, South Korea’s cryptocurrency buyers crossed 15 million.
In line with figures submitted by the Financial institution of Korea, 15.59 million South Koreans held accounts on the nation’s prime 5 cryptocurrency exchanges by the top of November.
Deposits in crypto exchanges additionally doubled, rising from 4.7 trillion received ($3.2 billion) in October to eight.8 trillion received ($6.03 billion) in November.
The publish South Korea Cracks Down on Unregistered Abroad Crypto Exchanges: Report appeared first on Cryptonews.