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Trusted Editorial content, reviewed by leading industry experts and seasoned editors. Ad Disclosure South Korean financial authorities are considering sanctioning and blocking access to multiple overseas crypto exchanges, including BitMEX and KuCoin, for allegedly offering their services to Korean customers without registration. Overseas Crypto Exchanges Risk Sanctions On Friday, local news media outlet Hangyung reported that South Korea’s Financial Intelligence Unit (FIU) of the Financial Services Commission (FSC) has identified multiple foreign crypto exchanges providing services to Korean customers without proper registration. The financial authority found that many well-known overseas crypto exchanges, including BitMEX, KuCoin, CoinW, Bitunix, and KCEX, have not registered as Virtual Asset Service Providers (VASPs) despite targeting Korean users. According to the report, the crypto platforms operate Korean-language websites or provide market and customer support activities targeted to Korean investors without notifying authorities or filing for a VASP license. For context, under the Specified Financial Information Act, exchanges must formally register as a VASP with the FIU to obtain a license and be able to conduct business in the country, such as storage, brokerage, and management of crypto assets. Failure to report to the financial authorities will make those platforms illegal businesses and subject them to criminal and administrative sanctions. The FIU, which is investigating these exchanges, has reportedly begun preparing measures, including blocking access to their platforms, while consulting with the relevant authorities. In 2022, the FIU requested the Korean National Security Agency to block 16 overseas exchanges, including MEX, Poloniex, and KuCoin, for offering their services without registration. The watchdog also cooperated with domestic card companies to block crypto-related purchases and payment services using credit cards in the country, which resulted in many exchanges withdrawing from the Korean market. An FIU official stated the unit is “currently reviewing measures to block access to undeclared overseas exchanges…

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Filed under: News - @ March 22, 2025 5:21 pm