Korea Cracks Down on 27 Crypto Unregistered Sites Including KuCoin and MEXC
Key Summary
South Korea's Financial Intelligence Unit has blocked access to 27 unregistered crypto exchanges, including KuCoin and MEXC, citing lack of investor protections and excessive fees. The move is expected to increase competition in the Korean market and has acknowledged potential difficulties for existing users withdrawing assets.
Background
South Korea's Financial Intelligence Unit (FIU) has approved measures to block domestic access to 27 websites operated by unregistered crypto exchanges and other virtual asset service providers. The list includes KuCoin, MEXC, Phemex, and Bitrue.\\n\n
Details
The block applies to crypto platforms that have not registered under the Act on Reporting and Using Specified Financial Transaction Information, South Korea's anti-money laundering legislation. The FIU assessed whether overseas operators target Korean customers by looking at whether platforms offer Korean-language services, market to South Korean users or support transactions in Korean won.\\n\n
Impact
The move is expected to increase competition in the Korean cryptocurrency market. However, it has acknowledged that the website blocks could complicate withdrawals for existing users. The FIU plans to provide withdrawal guidance and support through the Digital Asset eXchange Alliance (DAXA), with cooperation from the operators.\n
Related News
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Key Entities
South Korea's Financial Intelligence Unit (FIU), KuCoin, MEXC, Phemex, Bitrue, CoinW, BTCC, BitMart, BingX, DigiFinex\n
Narrative Theme
Regulatory Enforcement\n
Key Takeaways
South Korea has blocked access to 27 unregistered crypto exchanges, including KuCoin and MEXC. The move aims to increase competition in the Korean market while acknowledging potential difficulties for existing users.\n\n
Image Prompt
A photo of a South Korean government building with a blurred background of cryptocurrency-related screens and laptops, conveying the intersection of technology and regulatory enforcement.