South Korea to block unregistered foreign crypto exchanges

Such companies as KuCoin, MEXC, CoinEx, Poloniex and others fall under the restriction

South Korea to block unregistered foreign crypto exchanges

South Korea plans to block access in its territory to foreign cryptocurrency exchanges that are not properly registered to operate in the country.

The Financial Services Commission of South Korea (FSC) has reported 16 companies to local law enforcement agencies and asked other agencies to block access to the local sites of these platforms, according to the publication.

KuCoin, MEXC, Phemex, XT.com, Bitrue, ZB.com, Bitglobal, CoinW, CoinEx, AAX, ZoomEx, Poloniex, BTCEX, BTCC, DigiFinex and Pionex fall under the restriction. South Korean authorities will isolate them from the local crypto market unless the companies get the necessary permits.

According to the newspaper, executives of unregistered companies could face up to five years in prison or fines of up to 50 million won ($37,900). They could also be barred from registering a business for a certain period of time.

According to the South Korean government, there are 35 registered platforms that provide services in the virtual asset sector. But only five crypto exchanges – Upbit, Bithumb, Coinone, Korbit and Gopax – account for 99 percent of the domestic market.

In early April, major South Korean cryptocurrency exchanges, including Upbit, Bithumb and Korbit, closed access to their trading platforms to Russian residents. Upbit attributed the blocking to a recommendation by the Financial Action Task Force (FATF).

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