South Korean Authorities Are Rampping Up Efforts to Regulate the Crypto Market

The Financial Intelligence Unit (FIU) of the Financial Services Commission is investigating several platforms, including KuCoin, BitMEX, CoinW, Bitunix, and KCEX

output: South Korean authorities are stepping up efforts to regulate the crypto market by focusing on exchanges that are operating without proper licensing, according to a report by CoinDesk Korea.

The Financial Intelligence Unit (FIU) of the Financial Services Commission is currently investigating several platforms, including KuCoin, BitMEX, CoinW, Bitunix, and KCEX, for allegedly providing services to South Korean users without registering as Virtual Asset Service Providers (VASPs).

As part of its probe, the FIU is consulting with related agencies and considering measures to block access to the identified exchanges. An official from the FIU confirmed that discussions are ongoing with the Korea Communications Standards Commission, which handles internet regulations, to determine the best way to restrict access to these platforms.

The latest move comes amid a broader crackdown on the crypto market in South Korea. Earlier this week, prosecutors raided Bithumb amid suspicions that its former CEO, Kim Dae-sik, embezzled company funds to finance an apartment purchase. Bithumb has maintained that no wrongdoing occurred and that Kim had secured a loan to cover the expenses.

Moreover, rumors have swirled about illicit payments to secure listings on South Korean exchanges, specifically Bithumb and Upbit. Anonymous sources have claimed that some projects paid large sums to intermediaries to gain a presence on these platforms. In response, Upbit demanded transparency from media sources concerning these allegations.