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South Korea’s FIU is cracking down on unregistered overseas crypto exchanges by blocking access to their platforms. Upbit’s South Korean partner Dunamu was served a three-month suspension in late February.  The Bank of Korea is not interested in a Strategic Bitcoin Reserve and has never been. South Korea’s Financial Intelligence Analysis Unit (FIU) is significantly increasing its enforcement on cryptocurrency exchanges, both within the country and operating internationally. With regulatory compliance under intense scrutiny, the FIU has initiated actions against multiple trading platforms, signaling a clear and strict stance against crypto-related service providers. The FIU is also taking decisive measures against unregistered overseas exchanges, including prominent names like BitMEX and CoinW, citing violations of South Korea’s Specific Financial Transaction Information Reporting and Use Act.  Authorities plan to block access to these non-compliant platforms for Korean users, a move aimed at curbing unregulated cryptocurrency trading. Reports indicate that another overseas exchange was also targeted in this action. Why is South Korea’s FIU Cracking Down on Major Crypto Exchanges? This development has triggered concerns among market participants, who fear restricted access to widely used trading platforms. So far, the affected exchanges have not released official statements addressing the FIU’s actions. “This action reflects a growing trend among governments to enforce stricter regulations on crypto exchanges operating within their jurisdictions,” said crypto analyst Alan Brown. Related: Bitcoin Not Suitable for Reserves, Says South Korea’s Central Bank Which Major Crypto Exchanges Are Facing FIU Scrutiny? Upbit, one of South Korea’s largest cryptocurrency exchanges, has also faced regulatory headwinds. The FIU reportedly issued a suspension notice against Upbit in January over alleged Know Your Customer (KYC) violations. Dunamu, the exchange’s partner firm which operates Upbit’s South Korean business, also received a three-month suspension notice in late February due to a “violation of the obligation to…

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Filed under: News - @ March 21, 2025 5:26 pm