- South Korean authorities are targeting KuCoin and 16 other cryptocurrency exchange platforms for presumably functioning there illegally.
South Korea issued a warning against KuCoin and 16 others
Users in South Korea may not be able to connect to more than a handful of cryptocurrency trading platforms as local officials crack down on international companies they claim are operating illegally in the nation. The nation’s Financial Services Commission (FSC) has analyzed various unlicensed providers conducting business with Koreans without recognition from the appropriate authorities.
KuCoin, MEXC, Phemex, XT.com, Bitrue, ZB.com, Bitglobal, CoinW, CoinEX, AAX, ZoomEX, Poloniex, BTCEX, BTCC, DigiFinex, and Pionex were the platforms in concern. The FSC determined that the companies were using Korean-language webpages and executing campaigns aimed at neighborhood residents to attract Korean clients. The regulatory body issued a warning that unauthorized exchanges did not have the necessary safeguards, such as accredited management systems for information security officially mandated as per Korean law. So these exchanges might cause security breaches for the users in South Korea.
In South Korea, engaging in illicit economic operations through unregistered corporations carries a sentence of up to five years in jail or a penalty of up to 50 million won ($38,000).
Korean authorities and their cautious attitude toward crypto
In recent days, South Korea has tightened its control over the cryptocurrency industry, particularly in the aftermath of the demise of Terraform Labs’ TerraUSD (UST) stablecoin and its native token LUNA. The headquarters of trading platforms Upbit and Bithumb were raided last month as part of an inquiry on whether TerraLabs CEO Do Kwon purposefully brought about the demise of the Terra community. There was a serching performed in the residence of TerreLabs co-founder Daniel Shin. Meanwhile, a probe into unauthorized international transfers concentrating on the so-called “Kimchi premium” on Bitcoin value and its trading volume launched in South Korea.