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South Korea Cracks Down On KuCoin And BitMex Among Other Crypto Exchanges

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The Financial Intelligence Unit (FIU) in South Korea, which falls within the framework of the Financial Services Committee (FSC), has started enforcement procedures against many encrypted currency exchanges, including Kucoin and Bitmex, to work in the country without registration as virtual asset services provider (VASPS) under South Korea’s financial information law.

According to local media reports published on March 21, 2025, the South Korean authorities are considering sanctions such as preventing access to all unregistered encryption exchanges such as VASPS, in cooperation with the Korean Communications Standards Committee (KCSC).

Other encryption exchanges accused of South Korea’s violation of Money Laundering (AML), COINW, Bitunix and KCEX financial regulations. The authorities accused all the exchanges listed here of operation without necessary approvals and adhering to compliance with the country by providing marketing and supporting customers to South Korean investors.

Curd companies participating in storage, mediation, encryption sales and management are assigned to submit a report to FIU. Lack of compliance with the company’s illegal activities leads to criminal prosecution, penalties and administrative penalties.

This organizational correction in South Korea, however, reflects a wider global direction. Since the encryption market ripens, organizers all over the world impose strict rules and guidelines to maintain transparency, security and compliance.

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Investigators are also examining local exchanges in South Korea

While the investigations into the international stock exchanges are continuing, local exchanges in South Korea also face the heat about doubts about financial misconduct.

Only yesterday, the South Korean authorities raided the exchange of encryption due to doubts about their former CEO of the difference in an apartment.

Doubts arose when it was revealed that Bithumb granted 3 billion Koreans (more than $ 2 million) to former CEO Kim Die Sick, who is now working on the stock exchange as a consultant. The stock exchange replied that Kim had already taken a loan to pay the money.

The campaign in South Korea is against the exchange of encryption to violate its bases is not a new phenomenon. In 2022, FIU asked KCSC to prevent 16 unregistered encryption exchanges, including Kucoin, Mexc and Poloniex, which led to many exchanges of encryption in the suspension of its operations in South Korea.

Last February, FIU reported that South Korea has only 31 encoded companies, a decrease from 42 in 2024.

South Korea recently announced plans to implement the strongest AML rules, in line with its organizational renewal focusing on preventing financial crimes.

Moreover, the authorities also explore other aspects of Blockchain technology. Korea Bank recently announced the CBDC Pilot project, which will be launched in April this year, which will last for three months.

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Main meals

  • South Korea breaks unregistered coding such as Bitmex and Kucoin and others.

  • The South Korean authorities are considering preventing access to all unregistered encryption operations such as VASPS.

  • Becheneb stormed bithumb because of their doubts about the money of the former CEO company to buy an apartment.

Beyond South Korea appeared on Cocoin and Bettx from other encryption exchanges that first appeared on 99bitcoins.

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