Hold onto your hats, crypto enthusiasts, because the crypto landscape in South Korea is set to get a little smaller and a lot more regulated! The Financial Intelligence Unit (FIU) is tightening the reins on foreign crypto exchanges that have been playing fast and loose with local rules.
In the latest twist of this crypto saga, a handful of exchanges like BitMEX, KuCoin, CoinW, Bitunix, and KCEX are in the hot seat for not following the Specific Financial Information Act's guidelines. This Act is not just some bureaucratic fluff; it requires any crypto outfit dealing in trading, storage, or management to report their operations to the FIU. If they don't, they're flirting with criminal charges and the regulatory equivalent of a stern finger wagging.
But it doesn't stop there. These exchanges have been running Korean-language sites, wooing local investors without offering proper support or marketing tailored to South Korea. The FIU isn't amused, and they're considering pulling the plug on these platforms, working with the Korea Communications Standards Commission to potentially block access.
An FIU official explained, “We’re cooking up a storm of measures to tackle these unreported exchanges and expect to dish out some serious action by the end of this year.”
Now, South Korea is no stranger to cracking down on non-compliant exchanges. Back in September 2021, the FIU gave over 60 exchanges the ultimatum to either shape up or ship out. Only a few, like Upbit and Bithumb, made the cut, while others had to scramble for compliance.
Fast forward to 2022, and the FIU was still on the warpath, blocking access to 16 overseas exchanges and even joining forces with local card companies to curb crypto transactions.
With only 31 registered crypto firms left standing in South Korea, down from a mighty 42 in 2024, the FIU's latest crackdown is sure to trim the ranks even further. So, buckle up, because the crypto terrain in South Korea is about to get a major shake-up!
