South Korea will Block 16 Unregistered Cryptocurrency Exchanges

B. Ali
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  • Sixteen organizations have been providing cryptocurrency services to Koreans and hosting events aimed at Koreans.
  • South Korea’s financial intelligence unit (KoFIU) informed investigators about illegal business practices, the Financial Services Commission (FSC) said.
  • The FSC will soon ban domestic access to non-government-recognized international trades.

According to the most recent report, the South Korean Financial Services Commission (FSC) notified investigating authorities that sixteen international cryptocurrency exchanges violated the Specific Financial Information Act.

Even though the law prohibits unregistered cryptocurrency exchanges from operating without a license, 16 organizations have been providing cryptocurrency services to Koreans and hosting events aimed at Koreans. As a result, the Financial Services Commission (FSC) attempts to prevent these exchanges from functioning in their country.

This occurred after the FSC requested that the Korea Communications Commission block access to their websites from within the country. Poloniex, Pionex, DigiFinex, AAX, ZoomEX, MEXC, KuCoin, CoinEX, and BitGlobal are among the exchanges affected.

South Korea Identifies 16 Foreign Crypto Exchanges

The Financial Services Commission (FSC), South Korea’s main financial regulator, announced Thursday that the country’s financial intelligence unit (KoFIU) had informed investigators about the illegal business practices.

The Korean Financial Intelligence Unit, or KoFIU, was established by the Financial Services Commission to combat money laundering and terrorism. The agency has investigated 16 exchanges for failing to follow their administrative licenses. Without official permission, these exchanges have been promoting cryptocurrency and assisting Koreans.

According to the regulator, all 16 cryptocurrency exchanges are based outside Korea and do not have an official presence. Furthermore, it was discovered that they were targeting Korean customers when conducting cryptocurrency business. They create Korean-language websites, host marketing events for Korean customers, and allow Koreans to buy cryptocurrencies with credit cards.

FSC to Prohibit Domestic Access

The Financial Services Commission will soon prohibit domestic access to non-government-recognized international trades. The deadline for obtaining the permits, however, is September 24. If the authorization requirements deadline is not met, the websites will be deactivated immediately.

Penalties may also be imposed on those who worked for these companies. To continue business in South Korea, cryptocurrency exchanges must follow the Specific Financial Information Act guidelines. The act stipulates a penalty of 50 million or a minimum of five years for breaking the law.

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