Hold onto your hats, crypto enthusiasts! The crypto landscape in South Korea is about to experience a seismic shift as the country's Financial Intelligence Unit (FIU) tightens its grip on overseas crypto exchanges. The FIU is on a mission, wielding its regulatory hammer, and it's eyeing platforms like BitMEX, KuCoin, CoinW, Bitunix, and KCEX. Why? Because they've skipped the crucial step of registering as Virtual Asset Service Providers (VASPs) as required by South Korea's Specific Financial Information Act.
Picture this: these exchanges have been running Korean-language websites, but without proper marketing or customer support for local investors. Now, the FIU is not just sitting back and watching. It's cracking its knuckles, ready to investigate, and even contemplating blocking site access to these rebel platforms. An FIU official hinted at a big move, saying they're consulting with the Korea Communications Standards Commission to potentially block access to these unreported exchanges.
This isn't the first rodeo for South Korean authorities. Back in September 2021, they gave more than 60 exchanges a firm handshake out of the country for not meeting anti-money laundering standards and registration requirements. Only a few, like Upbit, Bithumb, Coinone, and Korbit, remained standing.
Fast forward to 2022, and the FIU was at it again, teaming up with the Korea Communications Standards Commission to block access to 16 non-compliant overseas exchanges. They even got local card companies on board to block crypto purchases from these platforms.
As of now, the number of registered crypto firms in South Korea has dwindled to just 31, a significant drop from 42 the previous year. With the FIU's latest crackdown, that number might just see another dip. So, buckle up, because the crypto scene in South Korea is in for a wild ride!
