South Korea Investigates KuCoin and BitMEX
Date: 2025-03-21 Author: Henry Casey Categories: IN WORLD
The Financial Intelligence Unit of South Korea (FIU) reported that all cryptocurrency platforms operating in the country are required to register under the Financial Information Act. The agency's attention was drawn to KuCoin, BitMEX, as well as CoinW, Bitunix, and KCEX. It was found that these companies operate through Korean websites, offering services to local investors without disclosing the necessary information. The FIU is currently analyzing possible steps to restrict access to these services.
"We are in talks with the Korea Communications Standards Commission (KCSC) on measures aimed at blocking unregistered foreign exchanges working with Korean clients. “We are cooperating with the authorities, collecting data on the damage caused, and expect that decisive steps will be taken against illegal platforms this year,” the FIU said.
In February, the FIU reported that only 31 cryptocurrency companies were officially registered in the country, a 26% decrease compared to 2024. Platforms such as GDAC, ProBit, Huobi Korea, and Bitrade were excluded from the state registry. The reason was that they failed to renew their registration within the established deadline.
The increased supervision of cryptocurrency exchanges is related to the Bank of Korea’s recent decision to abandon the formation of a strategic reserve in bitcoin due to the high volatility of the cryptocurrency market. Instead, the central bank is focusing on developing its own digital currency (CBDC). In April, it intends to launch a test of the digital won, which will last for about three months.
