South Korea Cracks Down On KuCoin & Other Crypto Exchanges; Here's Why

Highlights

South Korea targets unregistered crypto exchanges operating in the country.
These platforms include BitMEX, KuCoin, CoinW, Bitunix, and KCEX.
The country has initiated to take proper actions against these platforms.

South Korea has launched a crackdown on unregistered overseas crypto exchanges operating in the country, including KuCoin, BitMEX, CoinW, Bitunix, and KCEX. The Financial Intelligence Unit (FIU) has identified these platforms as illegally operating, failing to register as virtual asset service providers (VASPs) under the Specific Financial Information Act.

South Korea Targets Unregistered Crypto Exchanges

As part of South Korea’s crypto regulatory efforts, the Financial Intelligence Unit has cracked down on multiple crypto exchanges for illegally operating in the country. These platforms include BitMEX, KuCoin, CoinW, Bitunix, and KCEX.

These exchanges have reportedly failed to register as virtual asset service providers (VASPs) under the Specific Financial Information Act. In addition, they have been found to be operating Korean websites, targeting local investors with marketing and customer support, all without proper registration or disclosure. These findings have sparked increased scrutiny over these crypto exchanges.

An FIU official revealed that the regulator is currently analyzing measures to block access to these crypto exchanges. “We are currently reviewing access blocking measures for unreported overseas exchanges that are providing services to domestic investors through consultation with the Korea Communications Standards Commission,” the representative stated. The official further added,

We are organizing damage cases and related data to strengthen communication between the authorities, and we expect to take tangible measures within this year.

Kucoin and Other Major Exchanges Targeted for Sanctions

According to local reports, top crypto exchange KuCoin is under scrutiny for violating licensing regulations. Other platforms that are currently deemed by the South Korean regulator as illegally offering services include BitMEX, CoinW, Bitunix, and KCEX. As these exchanges have failed to adhere to proper regulatory norms, the FIU targets them for sanctions.

Notably, the financial watchdog has initiated procedures to take proper actions against these crypto exchanges. With intense scrutiny, the FIU is consulting with relevant organizations to proceed further.

This development follows the nation’s recent rejection of the notion of a strategic Bitcoin reserve. The Bank of Korea has dismissed the possibility of adopting a crypto reserve citing its volatile nature and inherent risks.

In addition, the Bank of Korea is experimenting with its CBDC project. The central bank will launch a CBDC pilot program in April, possibly lasting for three months.

South Korea’s Crypto Regulations: An Overview

The country has been introducing comprehensive measures to oversee the crypto industry. The country’s main objective is to maintain a balance between market growth and user protection.

Recently, the country announced its decision to implement solid anti-money laundering regulations. South Korea revealed its regulatory revamp with a specific focus on the AML rules.

Recommended
Price Analysis

Best Crypto Presales To Invest In September 2025 – Top Upcoming Presale Tokens

Best Crypto AI Trading Bots In 2025

Top Meme Coins To Buy In September 2025

Nynu V Jamal

Nynu V Jamal is a Senior Journalist at CoinGape. She boasts more than 3 years of experience in content writing, with expertise in crypto and blockchain. She has contributed to platforms like CoinEdition and CryptoTale, demonstrating her proficiency in navigating the dynamic crypto landscape. Beyond her journalistic pursuits, Nynu is a literary enthusiast, having served as an Assistant Professor of English Language and Literature. She is a Master's degree holder in English Literature and a UGC NET qualifier. Her academic background has enabled her to publish research papers on literature, while also nurturing her creative side as a published poet. Her creative side extends to music, crafts, and art, which she actively explores. Her unique blend of analytical and creative skills allows her to craft engaging stories that captivate audiences. Stay updated with Nynu on LinkedIn

Why trust CoinGape: CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights to our readers. Our journalists and analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.

Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.

Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.