South Korea Cracks Down on 5 Major Crypto Exchanges in Regulatory Sweep

An FIU official confirmed that they are reviewing measures to block access to these platforms. “We are working with the Korea Communications Standards Commission to restrict access to unregistered exchanges operating in violation of the law,” the official said.

KuCoin, BitMEX, and Others Face Sanctions

KuCoin, one of the largest global crypto exchanges, is under fire for its South Korea operations. Along with BitMEX, CoinW, Bitunix and KCEX, KuCoin is facing sanctions for not complying with regulations. Authorities say these platforms not only lacked the necessary licenses but also promoted their services to South Korean users.

• Regulatory violations: No VASP registration and AML compliance.

• Marketing activities: Korean language websites targeting local investors.

• Penalties: Restrictions on access, financial sanctions and legal action.

🚨 South Korea Cracks Down on Unregistered Foreign Crypto Exchanges! 🚨

The Financial Intelligence Unit targets:

1. BitMEX
2. KuCoin
3. CoinW
4. Bitunix
5. KCEX

⚖️ Stay informed, stay secure! 💼🔒#CryptoNews #Regulations #SouthKorea #CryptoExchanges #Security pic.twitter.com/fiMoxk8BR7

— The CryptoZenith (@TheCryptoZenith) March 21, 2025

The FIU’s crackdown shows South Korea is serious about tightening the noose on digital asset trading. This is following similar actions taken against other unregistered exchanges in the past year, signifying the country’s strong stance on investor protection.

South Korea’s Expanding Crypto Regulations

South Korea is refining its crypto regulations to balance market growth with investor security. Recent moves include:

• Tighter AML enforcement: New AML measures to curb crypto related illicit activities.

• No Bitcoin in state reserves: The Bank of Korea ruled out holding Bitcoin in state reserves, citing volatility.

• CBDC pilot: A government-backed CBDC trial will start in April 2025 and run for 3 months.

As regulations tighten up, crypto exchanges must navigate a complex legal landscape. Market participants expect more government actions, including potential laws to regulate DeFi and NFT markets.