Hold onto your digital wallets, folks! The crypto scene in South Korea is getting a major shake-up as the Financial Intelligence Unit (FIU) tightens the reins on overseas exchanges. Picture this: your favorite international crypto platforms like BitMEX, KuCoin, CoinW, Bitunix, and KCEX are on the chopping block for not playing by the local rules.
The South Korean financial watchdogs are rolling up their sleeves, ready to dish out penalties to those who haven’t reported their operations as Virtual Asset Service Providers (VASPs) under the Specific Financial Information Act. This is serious business as failing to register means these exchanges are technically running illegal operations in the country. Yikes!
But wait, there's more! These exchanges have been wooing Korean investors with Korean-language sites but have skipped offering customer support and proper marketing. The FIU isn't having it and is now on a mission to potentially block access to these sites, working closely with the Korea Communications Standards Commission. Talk about laying down the law!
“We're in full swing, reviewing measures to block access to these unreported exchanges,” said an FIU insider. The authorities are keen on taking concrete actions by the end of the year, aiming to protect local investors.
This isn’t the first rodeo for the FIU. Back in September 2021, they gave the boot to over 60 exchanges that couldn’t meet anti-money laundering and registration standards. Only a handful, like Upbit, Bithumb, Coinone, and Korbit, made the cut. Fast forward to 2022, and they blocked 16 more overseas exchanges, even teaming up with local card companies to stop crypto purchases.
This year, the FIU reported a 26% drop in registered crypto firms, now down to 31 from 42 last year. With this latest crackdown, expect that number to dwindle even more. The crypto landscape in South Korea is changing, and only the strong (and compliant) will survive!
