South Korean authorities have been reported seeking a blockage of crypto exchange platforms that may operate without complying with the requirements set by the country’s financial regulator.
On March 21, Local Media Hankyung reported That the Financial Intelligence Unit (FIU) of the Financial Services Commission considers sanctions against crypto exchanges for allegedly operating the country without reporting as an operator to the appropriate regulators.
Financial Korean financial authorities need crypto exchanges to report to regulators as Virtual Asset Service Provider (VASPS) under the country’s specified Financial Information Act.
FIU is investigating a list of exchanges and conducts consultants with related agencies. The regulator also considers penalties, such as blocking access to exchanges, as they begin to prepare countermeasures.
South Korea regulators exchange crypto exchanges
The regulator is reported to be cracking the exchanges that are said to provide services to South Koreans without the appropriate Vasp report. The exchanges on the FIU list have been reported to have provided marketing and customer support to Korean investors without going through the country’s compliance process.
Local media Hankyung noted that crypto exchange Kucoin is on the list with other crypto platforms. In a statement, a Kucoin representative at Cointelegraph said:
“We are closely monitoring regulatory developments in all constituents, including Korea. In Kucoin, we believe that compliance is important for the healthy and sustainable growth of the crypto industry-it has always been our stance and will continue to guide us as we move forward. We have stayed focused on supporting the long-term development of the industry through proactive and responsible practice.”
Under the laws of the country, crypto sales operators, storage, brokers and management are required to report to FIU. If the exchanges do not comply, their business can be considered illegal and subject to criminal penalties and administrative penalties.
An FIU official said in the report that the steps to block access to the exchanges included in the list will be reviewed. The official said the financial regulator is currently consulting with the Korea Communications Standards Commission, the regulator in charge of the Internet, how they can block access to exchanges.
Related: Wemix denied the cover-up in the midst of the delay of $ 6.2M bridge hack announcement
South Korea exchanges faced with investigation
In addition to foreign exchanges, South Korean crypto exchanges have also faced investigations of suspicions and rumors of wrong financial activities.
On March 20, prosecutors attacked Bithumb following the suspicions of its former CEO, Kim Dae-Sik, EMBZZLED COMPANY FUNCTIONS To buy an apartment. Authorities suspect that its exchange and executive may violate certain financial laws for buying an apartment. However, Bithumb responded that Kim had taken a loan to pay off the funds.
In addition, rumors of mediators are paying to list Bithumb and upbit surfaced projects. Noted by the unknown resources, Wu Blockchain said projects claimed to be paying mediators million to enroll in exchanges.
Upbit responded, asking the media outlet to reveal the list of digital asset projects that pay the brokerage fees.
https://www.youtube.com/watch?v=ndv0rFehetq
Magazine: Crypto fans are obsessed with longevity and biohacking: Here’s why
