TechFlow news, March 21 — According to Cointelegraph, the Financial Intelligence Unit (FIU), under South Korea's Financial Services Commission, is considering sanctions against cryptocurrency exchanges suspected of operating in South Korea without proper registration with relevant regulators.
Under South Korea’s "Act on Reporting and Use of Specific Financial Information," crypto exchanges must register as Virtual Asset Service Providers (VASPs) with the authorities. The FIU is currently investigating a number of exchanges and consulting with relevant agencies. Regulators are also considering enforcement actions, such as blocking access to these platforms, while preparing corresponding countermeasures.
According to Korean media Hankyung, several crypto platforms, including KuCoin, are on the FIU’s list. These exchanges are accused of providing marketing and customer support services to South Korean investors without going through South Korea’s compliance procedures.
