South Korea Targets Unregistered Crypto Exchanges, Including KuCoin and BitMEX

South Korea is intensifying its crackdown on overseas crypto exchanges operating without proper registration, targeting platforms like KuCoin, BitMEX, CoinW, Bitunix, and KCEX.

These exchanges have been flagged for failing to register as virtual asset service providers (VASPs) under local laws.

The Financial Intelligence Unit (FIU) is considering measures to block access to these unlicensed platforms, working with the Korea Communications Standards Commission to explore technical solutions. Officials are also compiling data on user losses to strengthen enforcement.

KuCoin and other platforms face potential sanctions for non-compliance, with regulatory action expected soon. This move comes as South Korea rejects the idea of holding Bitcoin as a reserve asset, citing volatility concerns, while progressing with a central bank digital currency (CBDC) pilot set to start in April.

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In addition to cracking down on unregistered exchanges, the government’s efforts highlight its increasing focus on protecting local investors. With a growing number of South Koreans investing in digital assets, regulators are ramping up measures to ensure compliance and safeguard the market from potential risks posed by unregulated platforms.

Alexander Stefanov