Here are all the crypto exchanges South Korea is blocking this year and why! On August 18th, the Korea Financial Intelligence Unit (KoFIU) announced the block of 16 crypto exchanges that are unregistered to operate in the country.
The Unregistered Crypto Exchanges
On August 18th, the KoFIU posted a press release on its official website regarding unregistered crypto exchanges in South Korea. According to the KoFIU, they have notified the investigative authority that 16 foreign-based Virtual Asset Service Providers (VASPs) are operating in the country without prior registration.
[Press Release] The Korea Financial Intelligence Unit (KoFIU) announced on August 18 that it has notified illegal business activities of 16 unregistered Virtual Asset Service Providers (VASPs) to the investigative authority. https://t.co/D5QAFYd4od
— Financial Services Commission – FSC Korea (@FSC_Korea) August 18, 2022
These are the exchanges on the list: KuCoin, MEXC, Phemex, XT.com, Bitrue, ZB.com, Bitglobal, CoinW, CoinEX, AAX, ZoomEX, Poloniex, BTCEX, BTCC, DigiFinex, and Pionex.
The KoFIU also added that these 16 exchanges are involved in business activities by offering Korean-language websites, promotional events targeting Korean customers, and “providing a payment option that supports the purchase of virtual assets using credit cards.”
In addition, The KoFIU stated, “On July 22th, 2021, the KoFIU notified foreign-based VASPs that have business operations targeting Koreans about their obligation to register their business with the authority pursuant to the Act.”
Unfortunately, these 16 firms did not respond to the notifications. Therefore, the KoFIU will take the necessary actions.
The Actions For The Unregistered Exchanges
The KoFIU has taken several actions regarding these unregistered exchanges in South Korea. For example, the KoFIU has notified the Korea Communications Commission and Korea Communications Standards Commission to block Korean citizens’ access to websites of unregistered firms to prevent them from using the services. The KoFIU also asked users to double-check the exchanges they are currently using.
When entering a new country, it is necessary to note that the crypto exchange needs to do a proper registration to avoid any issues in the future.