YEREVAN (CoinChapter.com) — Authorities in South Korea are reviewing access restrictions for unregistered crypto platforms. According to Hankyung on March 21, the Financial Intelligence Unit (FIU South Korea) is investigating crypto exchanges that did not file as Virtual Asset Service Providers (VASPs) under local law.
Exchanges must register under the Specified Financial Information Act. Without this, they are classified as unregistered crypto exchanges and can face criminal and administrative penalties. The FIU South Korea is working with related agencies to identify platforms operating without approval.
KuCoin South Korea Named in Compliance Probe
The FIU South Korea is focusing on exchanges providing services to South Korean users without VASP registration. The platforms offered Korean-language support and ran local marketing activities. This would place them under the scope of VASP requirements.
KuCoin South Korea was listed among the platforms under review. In a statement, a KuCoin representative said:
“We are closely monitoring regulatory developments across all jurisdictions, including Korea. At KuCoin, we believe that compliance is essential for the healthy and sustainable growth of the crypto industry—this has always been our stance and will continue to guide us as we move forward. We remain committed to supporting the industry’s long-term development through proactive and responsible practices.”
The statement did not confirm whether KuCoin South Korea had filed any documentation with local regulators. The FIU is still considering further actions, including access blocks.
Unregistered Crypto Exchanges Face Legal Consequences
Under current South Korean crypto regulations, companies involved in crypto trading, custody, or management must report to the FIU. If exchanges fail to meet these requirements, authorities classify them as unregistered and impose legal consequences.
An FIU official confirmed that consultations are ongoing. The Korea Communications Standards Commission is assessing the process for limiting access to platforms on the FIU’s list.
The list of exchanges has not been made public. However, local sources say that multiple platforms, including large global exchanges, are under review.
Bithumb Investigation Highlights Scrutiny of Local Exchanges
On March 20, prosecutors launched a Bithumb investigation after suspecting that its former CEO Kim Dae-sik misused company funds to buy an apartment. Authorities are checking for violations of financial laws.
Additionally, questions were raised about listing fees. Anonymous sources also told Wu Blockchain that some projects paid large sums to secure listings on Upbit and Bithumb. These claims mentioned intermediaries allegedly collecting millions.
Subsequently, Upbit responded to the report and asked Wu Blockchain to release the names of the digital assets involved. The company has not confirmed whether it will pursue legal action related to the report.