South Korea plans to sanction unregistered crypto exchanges such as BitMEX, KuCoin and others for operating illegally without VASP licences.
The Financial Intelligence Unit (FIU) has identified a number of exchanges that have not registered as Virtual Asset Service Providers (VASPs), a requirement under South Korean law.
The exchanges facing potential sanctions include BitMEX, KuCoin, CoinW, Bitunix, and KCEX. Authorities believe that these platforms offer services to South Korean users through Korean websites without the required registration.
‘We are currently reviewing blocking access to undeclared overseas exchanges serving domestic investors in consultation with the Korea Communications Standards Commission,’ says an FIU official.
KuCoin’s founders, Chun Gan and Ke Tang, were charged in March 2024 with conspiring to operate an unlicensed money transfer business and failing to implement a robust anti-money laundering programme.
Recently they paid 300 million USD fine
The duo pleaded guilty to running an unlicensed money transmission business and agreed to pay a fine of $300 million.
BitMEX is also reportedly looking for a buyer. According to sources familiar with the matter, the once-dominant derivatives exchange has hired boutique investment bank Broadhaven Capital Partners to manage a sale process.
The platform is known for popularising perps, or perpetual futures, a highly leveraged derivative product that has become a cornerstone of crypto trading. For years, BitMEX has been synonymous with high-risk crypto speculation and a dominant force in the derivatives market.
Last week, the Bank of Korea (BOK) announced that it had added Bitcoin to its foreign exchange reserve.
