South Korea Takes Action Against KuCoin And BitMex Alongside Other Crypto asset Exchanges

The Financial Intelligence Unit (FIU) of South Korea, which operates under the Financial Services Commission (FSC), has commenced enforcement actions against multiple crypto asset exchanges, notably including KuCoin and BitMex, for conducting business in the nation without registering as Virtual Asset Services Providers (VASPs) in accordance with South Korea’s Specific Financial Information Act.

Local media reports from 21 March 2025 indicate that South Korean authorities are deliberating on sanctions, which may involve blocking access to all crypto exchanges that have not registered as VASPs, in partnership with the Korea Communication Standards Commission (KCSC).

Other cryptocurrency exchanges allegedly breaching South Korean anti-money laundering (AML) regulations include CoinW, Bitunix, and KCEX. The authorities have charged all listed exchanges with operating without the required authorizations and failing to comply with the nation’s regulatory standards by marketing and providing customer support to South Korean traders.

South Korea is intensifying its crackdown on unregistered foreign crypto exchanges!

The FIU is focusing on KuCoin, BitMEX, CoinW, Bitunix, and KCEX for failing to register correctly. Authorities are poised to restrict access to these exchanges as part of their heightened enforcement measures.

Regulators…

— Pushpendra Singh Fan Club (@pushpendrajifan) March 21, 2025

Digital currency firms involved in activities such as storage, brokerage, selling, and management are required to report to the FIU. Failing to comply results in illegal operation and subjects the company to criminal charges, penalties, and regulatory sanctions.

This regulatory shift in South Korea resonates with a wider global trend. As the digital currency crypto market continues to mature, regulators around the world are enforcing stricter standards and guidelines aimed at enhancing transparency, security, and compliance.

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Authorities Are Also Investigating Domestic Exchanges In South Korea

Amid ongoing investigations into international exchanges, domestic exchanges within South Korea are also under scrutiny due to suspicions of financial misconduct.

Just yesterday, South Korean officials conducted a raid on the crypto exchange Bithumb, suspecting its former CEO of misappropriating company funds to buy an apartment.

Concerns were raised when it came to light that Bithumb had transferred 3 billion Korean won (over $2 million) to former CEO Kim Dae-sik, who currently acts as an advisor for the trading platform. The trading protocol claimed that Kim had previously taken out a loan to return the funds.

Enforcements against crypto exchanges in South Korea for rule violations are not unprecedented. In 2022, the FIU had urged the KCSC to obstruct 16 unregistered crypto exchanges, including KuCoin, MEXC, and Poloniex, which led to many exchanges halting their operations within South Korea.

In February, the FIU announced that South Korea had recorded only 31 registered crypto firms, a decrease from 42 in 2024. Companies such as GDAC, ProBit, Huobi Korea, and Bitrade were delisted.

Recently, South Korea revealed plans to establish more stringent AML regulations as part of their regulatory overhaul aimed at curbing financial crimes.

Additionally, authorities are delving into other facets of distributed ledger technology. The Bank of Korea recently announced an impending pilot project for a Central Bank Crypto asset (CBDC), set to commence in April this year, with an anticipated duration of three months.

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The article South Korea Cracks Down On KuCoin And BitMex Among Other Crypto Exchanges first appeared on 99Bitcoins.