South Korea Reportedly Preparing Sanctions Against BitMEX, KuCoin, and Others

The Financial Intelligence Unit (FIU) has identified several unregistered crypto exchanges as targets for potential sanctions, according to reports.

Key Takeaways:

• South Korean financial authorities are preparing sanctions against crypto exchanges operating illegally in the country, according to a report from Hankyung.
• The targeted exchanges—BitMEX, KuCoin, CoinW, Bitunix, and KCEX—were found to be operating Korean-language websites without registering with the Financial Intelligence Unit (FIU).

South Korean financial authorities are preparing sanctions against crypto exchanges operating illegally in the country, business newspaper Hankyung reported on Friday.

The Financial Intelligence Unit (FIU) has identified several exchanges that have not registered as Virtual Asset Service Providers (VASPs) as targets for enforcement actions, according to the report.

The targeted exchanges—BitMEX, KuCoin, CoinW, Bitunix, and KCEX—were found to be operating Korean-language websites without registering with the Financial Intelligence Unit (FIU). Under South Korean regulations, this classifies them as illegal businesses.

"We are currently reviewing blocking access to unreported overseas exchanges that are providing services to domestic investors through consultation with the Korea Communications Standards Commission," an FIU official stated, according to the report.

"We are organizing damage cases and related data to enhance communication between authorities, and we expect tangible measures to be implemented within this year," the FIU official added.

BitMEX, KuCoin, and CoinW did not respond to requests for comment.

Meanwhile, last month, South Korean crypto exchange Upbit faced a three-month ban on accepting new customer asset transfers due to non-compliance with its obligations as a regulated provider.