16 international crypto exchanges – including KuCoin and MEXC have come under the attention of South Korean financial regulators for failing to comply with local guidelines and allegedly soliciting domestic customers. without a license to operate.
Last year, regulators sent letters to 27 crypto exchanges targeting South Koreans. These exchanges could be punished if they continue to look for Korean customers.
Legal measures that went into effect last year require all cryptocurrency exchanges operating in South Korea to apply for a license and obtain an information management certificate from a government-run technology agency. . This is an almost impossible task for any company that is not based in Korea.
And although a large number of South Korean crypto investors continue to use overseas crypto exchanges using VPNs and other means, regulators have warned exchanges Actively look for Korean customers.
According to KBS, the Financial Intelligence Unit (FIU), which controls the nation’s cryptocurrency exchanges and processes license applications, said that it had asked law enforcement agencies to open formal investigations into a group of 16 exchanges, including Phemex, XT.com, Bitrue, ZB.com, Bitglobal and CoinW.
The FIU claims that the team operates websites in Korea, promotes Koreans, and even provides support to customers who are trying to use domestic credit and debit cards to buy tokens.
It has instructed the Korea Communications Commission and the Korea Communications Standards Board, the government’s internet and media censorship body, to “block all access to these companies in Korea”. Banks and credit card companies will also be ordered to block payment services for 16 exchanges.