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.
In accordance with native media reviews revealed on 21 March 2025, the South Korean authorities are contemplating sanctions corresponding to blocking entry to all crypto exchanges not registered as VASPs, in collaboration with the Korea Communication Requirements Fee (KCSC).
Other 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 needed approvals and adherence to the nation’s compliance processes by providing advertising and buyer help to South Korean traders.
South Korea is cracking down on unregistered international crypto exchanges!
The FIU is concentrating on KuCoin, BitMEX, CoinW, Bitunix, and KCEX for working with out correct registration. Authorities might 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, nonetheless, displays a broader international development. Because the crypto market is maturing, regulators worldwide are imposing stricter guidelines and pointers to keep up transparency, safety, and compliance.
Discover: Finest Excessive-Threat, Excessive–Reward Cryptos to Purchase in March 2025
Investigators Are Additionally Analyzing Homegrown Exchanges In South Korea
Whereas investigations into the worldwide exchanges are ongoing, homegrown exchanges in South Korea are additionally going through the warmth over suspicions of monetary misconduct.
Simply yesterday, South Korean authorities raided the crypto change 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 change as an advisor. The change countered that Kim had already taken a mortgage to repay the funds.
Crackdowns in South Korea towards crypto exchanges for violating its guidelines should 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 said 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 just lately introduced plans to implement stronger AML guidelines, in keeping with their regulatory revamp centered on stopping monetary crimes.
Moreover, the authorities are additionally exploring different features of blockchain expertise. The Financial institution of Korea just lately introduced its upcoming CBDC pilot challenge set to launch in April this 12 months, which can tentatively final for 3 months.
Discover: Prime Solana Meme Cash to Purchase in March 2025
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 put up South Korea Cracks Down On KuCoin And BitMex Among Other Crypto Exchanges appeared first on 99Bitcoins.
