South Korea’s financial authorities are considering sanctions and prohibiting access to many encryption exchanges abroad, including Bitmex and Kucoin, allegedly providing their services to Korean customers without registration.
Exchange of encryption abroad risk penalties
Friday, Hangyung local media outlet I mentioned The Financial Intelligence Unit in South Korea (FIU), affiliated with the Financial Services Committee (FSC), has set many foreign encryption exchanges that provide services to Korean customers without appropriate registration.
The financial authority found that many of the well -known encryption exchanges, including Bitmex, Kucoin, Coinw, Bitunix and KCEX, were not registered as virtual asset service providers (VASPS) despite the targeting of Korean users.
According to the report, encryption platforms run on Korean web sites or provide market support activities and target customers to Korean investors without notifying the authorities or providing a VASP license.
For the context, under the specific financial information law, the stock exchanges should be officially registered as VASP with FIU for a license and is able to conduct business in the country, such as storage, mediation and management of encryption assets.
Reporting the reporting of the financial authorities will make these platforms illegal companies and expose them to criminal and administrative penalties. According to what FIU, which is investigating these exchanges, began preparing measures, including preventing access to its platforms, while consulting with the relevant authorities.
In 2022, FIU asked the Korean National Security Agency to prevent 16 exchanges abroad, including MEX, Poloniex and Kucoin, to provide its services without registration.
The Supervisory Authority has also cooperated with local card companies to prevent purchases and payment payment services using credit cards in the country, which led to the withdrawal of many exchanges from the Korean market.
A FIU official stated that the unit “is currently reviewing measures to prevent access to unpopular foreign exchanges that provide services to local investors in consultation with the Korean Communications Committee.”
In addition, “they boost communication between the authorities by collecting data about the relevant damage and data,” and concluded that “they expect concrete measures during the year.”
The major Korean strikes that struck the controversy
South Korean exchanges also occupied newspapers after recent reports claimed that Upbit and Bithumb brokers requested large fees to include projects on their platforms.
According to Wu Blockchain, anonymous sources claim Many projects “paid huge mediator fees to include their distinctive symbols in the largest cryptocurrency exchanges in South Korea.”
The alleged fees amounted to about 10 million dollars and 2 million dollars, respectively, with mediators “linked to the shareholders of UPbit and market makers.” Some projects claimed that they “provided mediator fees ranging from 3 % to 5 % of the total code amount, and eventually managed to successfully obtain APbit.”
However, the pioneering South Korean encryption exchange to reject Allegations. On March 20, Upbit issued a statement that he rejected after receiving the listing fees to support trading for the specified encryption assets.
Upbit does not allow the participation of external agencies to help or support medium trading, and all procedures are carried out directly by UPbit employees. Therefore, if a specific or individual company requires a mediator fee with the claim that it guarantees the support support from Upbit, please see that this is the act of illegal brokers who are not associated with the currency, and we ask for your own caution to prevent any harm from these measures.
Meanwhile, Bithumb is also facing another encryption scandal after South Korean policy raised its headquarters on Thursday.
As Bitcoinist reported, the company is under investigation to violate financial laws that are likely to be that the former CEO of the Stock Exchange, Kim Dae-Sik, embezzled about two million dollars to buy an apartment for personal use.
Bitcoin (BTC) trades at $83,944 in the one-week chart. Source: BTCUSDT on TradingView
Distinctive photo of Unsplash.com, Chart from Tradingview.com
Editing process For Bitcoinist, it is focused on providing accurate, accurate and non -biased content. We support strict resource standards, and each page is subject to a diligent review by our team of senior technology experts and experienced editors. This process guarantees the integrity of our content, importance and value of our readers.
adxpro.online