South Korea Strikes Hard on KuCoin and 4 Other Crypto Giants
- South Korea is taking action against five overseas crypto exchanges.
- The FIU identified KuCoin, BitMEX, CoinW, Bitunix, and KCEX as unregistered platforms.
- These exchanges violated the Specific Financial Information Act.
South Korea has begun regulatory action against five overseas crypto exchanges for operating illegally without proper registration. The Financial Intelligence Unit (FIU) identified KuCoin, BitMEX, CoinW, Bitunix, and KCEX violating the Specific Financial Information Act. Regulatory action involves access restrictions and sanction implementations because authorities are strengthening their oversight of cryptocurrency operations.
South Korea Targets KuCoin for Violations
South Koreas FIU flagged KuCoin for offering services to local users without registering as a virtual asset service provider. Officials reported that KuCoin operates a Korean-language website, engages in marketing campaigns, and provides support to domestic investors. Despite these activities, KuCoin has failed to comply with local registration laws, raising compliance concerns.
According to the regulators, KuCoin broke the Specific Financial Information Act when it neglected to register as a foreign cryptocurrency business in the country. KuCoins failure to follow mandatory procedures has triggered regulatory action and the possibility of service restrictions. As a result, the FIU is reviewing enforcement measures and may block KuCoins access within South Korea.
Technical access-blocking programs have been established through joint efforts between the Korea Communications Standards Commission and the FIU. Authorities aim to prevent unlicensed exchanges like KuCoin from operating freely in the country. User complaints and damages claims help the authorities prepare legal action against the exchange.
BitMEX Under Fire for Skipping VASP Registration
BitMEX has also been scrutinized for not registering as a VASP while targeting South Korean users. Although BitMEX delivered platform services in Korean and promoted its operations to domestic investors, it failed to fulfill the required regulatory requirements. The negligence caused the FIU to identify BitMEX as an exchange that might receive sanctions.
The financial watchdog is analyzing data on user activity and potential damages linked to BitMEXs operations in South Korea. The organization is working to establish better cooperation with related authorities to handle exchange violations properly. Top officials at FIU stressed the importance of urgent enforcement steps to defend financial investors and national regulatory rules.
As investigations continue, BitMEX could face access blocks and legal measures by South Korean regulators. These recent enforcement measures show the countrys determination to monitor foreign cryptocurrency operations strictly. The authorities seek to stop future violations by properly overseeing foreign virtual trading platforms within local jurisdictions.
CoinW, Bitunix, and KCEX Also Cited for Regulatory Violations
CoinW, Bitunix, and KCEX are also under investigation for providing unauthorized crypto services to South Korean users. The exchanges offer Korean-language services and crypto trading facilities without proper licensing and disclosure to South Korean users, violating the nations Specific Financial Information Act.
Authorities have discovered that these exchange platforms run marketing efforts and user engagement toward Korean investors. Users face financial loss because the exchange functions without proper oversight. The FIU has designated these platforms as immediate targets for its examination and enforcement procedures.
As part of their investigations, the FIU collects more evidence while its personnel collaborate with relevant agencies to develop system restrictions for intervention. This regulatory procedure is part of an organized movement to control the crypto market. The goal is to ensure all platforms follow the same legal standards within South Korea.
Read more: https://www.tronweekly.com/south-korea-strikes-hard-on-kucoin/
Text source: TronWeekly
