cryptocurrency

South Korea cracks down on numerous exchanges about regulations

  • The organization identified 16 service providers.
  • Local exchange offices were raided last month as part of an investigation.

More than a dozen cryptocurrency exchanges risk losing customers in South Korea as officials crack down on international companies they claim are operating illegally in the country.

According to a press release published by the Financial Services Authority (Security Cooperation ForumIn South Korea on Thursday, the organization identified 16 service providers that were not properly registered but still provided their services to the country’s citizens.

The FSC’s intelligence division notified the country’s investigative body about the platforms and asked to stop local access to their websites. KuCoin, MEXC, Phemex, XT.com, Bitrue, ZB.com, Bitglobal, CoinW, CoinEX, AAX, ZoomEX, Poloniex, BTCEX, BTCC, DigiFinex and Pionex have been identified as possible candidates.

Strict approach after the collapse of Terra

The FSC claims that the companies involved attracted Korean customers via marketing and websites in the Korean language. The regulator issued a warning, saying that unregistered markets lack safeguards including certified information security management systems. In their opinion, this could make them vulnerable to attacks on their security.

In South Korea, the maximum penalty for engaging in business operations as an unregistered company is five years in prison or a fine of 50 million KRW ($38,000). In addition, the intelligence agencies of the home country will be informed of the situation. Since the demise of the Terraform Labs stablecoin TerraUSD (UST) and its native token LUNA, the South Korean authorities have stepped up their monitoring of the crypto industry.

The offices of local exchanges were raided last month as part of an investigation into whether Tera coefficient Executive Director Do Kwon Deliberately caused the collapse of the Terra ecosystem. The residence of Daniel Sheen, another co-founder of Terra Labs, was also targeted.

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