Korean regulator takes action against 16 foreign crypto exchanges – regulation Bitcoin News

Korean regulator takes action against 16 foreign crypto exchanges – regulation Bitcoin News

South Korea’s financial intelligence unit is cracking down on 16 foreign cryptocurrency exchanges for operating illegally in the country. “Illegal business activities by unregistered entities may be punished with up to 5 years in prison or a fine of up to KRW 50 million,” the regulator said.

16 foreign crypto exchanges flagged by South Korean regulator

South Korea’s top financial regulator, the Financial Services Commission (FSC), announced on Thursday that the Financial Intelligence Unit (KoFIU) has notified investigative authorities of the illegal business activities of 16 unregistered virtual asset service providers (VASPs).

KoFIU is South Korea’s Financial Intelligence Unit (FIU) and the Asian country’s lead anti-money laundering and countering the financing of terrorism (AML/CFT) agency.

The 16 entities are Kucoin, MEXC, Phemex, XT.com, Bitrue, ZB.com, Bitglobal, Coinw, Coinex, AAX, Zoomex, Poloniex, BTCEX, BTCC, Digifinex and Pionex.

All 16 crypto exchanges are located outside of Korea without a formal domestic presence, the regulator said, adding that they were found to be engaged in crypto business activities aimed at domestic consumers. For example, they offer Korean-language websites, host promotional events aimed at Korean consumers, and provide a payment option that supports the purchase of crypto assets using domestic credit cards.

On July 22 last year, KoFIU informed foreign crypto exchanges that they must register their operations with the competent authorities. However, the 16 entities listed above continued to operate in South Korea without registration.

The competent authority stated in detail:

For illegal business activities of unregistered entities, a maximum of 5 years in prison or up to 50 million KRW [$38,000] fines may be imposed with a restriction on registration as a VASP on the domestic market for a certain period.

The regulator explained that the financial authorities in the jurisdictions where the service providers are located will be notified, and related credit card processing will be stopped in the domestic market. In addition, “the transfer of virtual assets to and from 16 unregistered entities will be impossible since the authorities have issued an administrative instruction requiring the suspension of transactions between registered and unregistered entities,” KFIU described.

Stressing that “authorities plan to take necessary measures” to prevent crypto service providers from operating without registration in South Korea, the regulator stressed:

KoFIU will continue to carefully monitor illegal business activities carried out by unregistered entities and maintain close cooperation with competent authorities.

What do you think about the South Korean regulator taking action against crypto exchanges operating illegally in the country? Let us know in the comments section below.

Korean regulator takes action against 16 foreign crypto exchanges – regulation Bitcoin News

Kevin Helms

An Austrian economics student, Kevin discovered Bitcoin in 2011 and has been an evangelist ever since. His interests lie in bitcoin security, open-source systems, network effects, and the intersection between economics and cryptography.

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