South Korea Targets Illegal Crypto Exchanges for Potential Sanctions

South Korean financial authorities plan sanctions against illegal crypto exchanges, as reported by Hankyung.

• The Financial Intelligence Unit (FIU) identified exchanges not registered as Virtual Asset Service Providers (VASPs) as targets for sanctions.
• Exchanges BitMEX, KuCoin, CoinW, Bitunix, and KCEX operate Korean-language websites without FIU reporting, classifying them as illegal.
• An FIU official stated that they are reviewing measures to block access to unreported overseas exchanges serving domestic investors.
• Authorities are collecting data to enhance cooperation and expect to implement measures within the year.
• Last month, Upbit faced a three-month prohibition on new customer asset transfers due to regulatory non-compliance.