The Monetary Intelligence Unit (FIU) of South Korea, which falls beneath the Monetary Providers Fee (FSC), has initiated enforcement motion towards a number of cryptocurrency exchanges, together with KuCoin and BitMex, for working within the nation with out registering as a Digital Asset Providers Supplier (VASPs) beneath South Korea’s Particular Monetary Data Act.
Based on native media studies printed on 21 March 2025, the South Korean authorities are contemplating sanctions reminiscent of blocking entry to all crypto exchanges not registered as VASPs, in collaboration with the Korea Communication Requirements Fee (KCSC).
Different crypto exchanges accused of violating South Korean anti-money laundering (AML) and monetary rules embody CoinW, Bitunix, and KCEX. Authorities have accused all exchanges listed right here of working with out essential approvals and adherence to the nation’s compliance processes by providing advertising and buyer help to South Korean buyers.
South Korea is cracking down on unregistered overseas crypto exchanges!
The FIU is concentrating on KuCoin, BitMEX, CoinW, Bitunix, and KCEX for working with out correct registration. Authorities could block entry to those platforms as a part of stricter enforcement.
Regulators…
— Pushpendra Singh Fan Membership (@pushpendrajifan) March 21, 2025
Crypto corporations concerned in storage, brokerage, crypto gross sales, and administration are mandated to report back to the FIU. Non-compliance renders the corporate’s actions unlawful and exposes it to legal prosecution, penalties, and administrative sanctions.
This regulatory correction in South Korea, nevertheless, displays a broader international pattern. Because the crypto market is maturing, regulators worldwide are imposing stricter guidelines and pointers to take care of transparency, safety, and compliance.
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Investigators Are Additionally Analyzing Homegrown Exchanges In South Korea
Whereas investigations into the worldwide exchanges are ongoing, homegrown exchanges in South Korea are additionally dealing with the warmth over suspicions of monetary misconduct.
Simply yesterday, South Korean authorities raided the crypto alternate Bithumb over suspicions of its former CEO embezzling firm funds to buy an house.
Suspicions arose when it was revealed that Bithumb gave 3 billion Korean gained (over $2 million) to former CEO Kim Dae-sik, who now works for the alternate as an advisor. The alternate countered that Kim had already taken a mortgage to repay the funds.
Crackdowns in South Korea towards crypto exchanges for violating its guidelines usually are not a brand new phenomenon. Again in 2022, the FIU had requested the KCSC to dam 16 unregistered crypto exchanges, together with KuCoin, MEXC, and Poloniex, which resulted in lots of crypto exchanges suspending their operations in South Korea.
Final February, the FIU acknowledged that South Korea had solely 31 registered crypto companies, down from 42 in 2024. They delisted GDAC, ProBit, Huobi Korea, and Bitrade among the many corporations.
South Korea had not too long ago introduced plans to implement stronger AML guidelines, in step with their regulatory revamp targeted on stopping monetary crimes.
Moreover, the authorities are additionally exploring different points of blockchain know-how. The Financial institution of Korea not too long ago introduced its upcoming CBDC pilot undertaking set to launch in April this yr, which can tentatively final for 3 months.
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Key Takeaways
South Korea is cracking down on unregistered crypto exchanges like BitMEX and KuCoin amongst others.
South Korean authorities are contemplating blocking entry to all crypto exchanges not registered as VASPs.
Authorities raided Bithumb over suspicions of its former CEO embezzling firm funds to buy an house.
The publish South Korea Cracks Down On KuCoin And BitMex Amongst Different Crypto Exchanges appeared first on 99Bitcoins.
