Korean financial watchdog to block Unregistered Crypto Exchange Websites

Korean financial watchdog to block Unregistered Crypto Exchange Websites

 

Unregistered Cryptocurrency Exchanges running operations in South Korea could see their services banned as the Korea Financial Intelligence Unit (FIU) takes regulatory action against 16 foreign-based cryptocurrency firms.

 

The FIU has informed its investigative authority that 16 digital asset service providers have been running operations without the necessary registration and permission. Major Cryptocurrency Exchanges, including the likes of KuCoin, Poloniex and Phemex, were listed alongside 13 other such Crypto Exchanges that are set to be thwarted by the FIU.

 

 

All 16 crypto exchanges have supposedly engaged in business activities targeting domestic clients by offering Korean-language websites, running advertising events targeting Korean users and providing credit card payment choice for Cryptocurrency trading. Such goings-on all fall under the umbrella of Financial Transactions Report Act.

 

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The FIU has already taken regulatory action against the unregistered Crypto Exchanges by reporting the violation of registration duties and intends to inform their counterparts in the respective countries wherein such Crypto Exchanges operate. Unregistered entities face five years in prison, a fine of roughly $37,000 and a potential ban on future registration in the nation.

 

“A request has also been submitted to the Korea Communications Commission and the Korea Communications Standards Commission to block domestic access to the websites of the crypto exchanges in question.”

 

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Credit card service providers have been requested to verify and block Cryptocurrency purchase transactions made with credit cards. The FIU has also issued a requirement to registered Crypto Exchanges in the country to halt transactions from the 16 unregistered crypto companies in an effort to suspend transfers to other platforms.

 

In July, South Korea is Financial Services Commission declared a deadline for all local and foreign-based, cryptocurrency-related platforms to register with the relevant establishments. Sept. 24 is the due date for such platforms to register before they are liable to face criminal prosecution and probable fines and penalties previously mentioned.

 

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While the FIU takes aim at unregistered Crypto Exchanges, the FSC has vowed to expedite the review of 13 different bills relating to digital currencies under the consideration of the National Assembly of South Korea. Efforts are being made to produce legislation that has a balanced approach to Blockchain Technology development, investor protection and market stability.