South Korea’s FIU Moves to Sanction Unregistered Crypto Exchanges
South Korea’s Financial Intelligence Unit (FIU) has initiated an enforcement process against several international cryptocurrency exchanges operating illegally in the country without proper registration.
FIU is also considering blocking access to these platforms in cooperation with the Korea Communications Standards Commission (KCSC).
According to local reports, the exchanges included on the sanctions list are BitMEX, KuCoin, CoinW, Bitunix and KCEX. These platforms are accused of violating South Korea’s anti-money laundering (AML) and financial regulations by operating without the necessary approvals.
South Korea’s regulatory framework requires all crypto exchanges to register with the FIU and adhere to strict AML policies.
Platforms that fail to do so are considered illegal operators and could face serious penalties, including access restrictions and criminal charges.
To ensure compliance, the FIU is reportedly working with the KCSC to block website access to blacklisted exchanges, preventing South Korean users from trading on these platforms.
South Korea’s Strict Stance on Crypto Regulations
The move is in line with South Korea’s broader regulatory crackdown on the cryptocurrency industry, aimed at protecting investors and preventing financial crimes.
Authorities have taken similar steps in the past, including delisting non-compliant exchanges and tightening AML enforcement on both domestic and foreign trading platforms.
While the timeline for sanctions and website restrictions remains unclear, the FIU’s latest action signals a firm stance against unregulated cryptocurrency activities in South Korea.
*This is not investment advice.