The Korea Financial Intelligence Unit (KoFIU) has urged citizens to exercise extra caution while using overseas crypto exchanges, and to verify that they have been registered with the Korean financial authorities.
KoFIU has also notified investigative authorities of 16 unregistered Virtual Asset Service Providers (VASPs).
These VASPs include KuCoin, MEXC, Phemex, XT.com, Bitrue, ZB.com, Bitglobal, CoinW, CoinEX, AAX, ZoomEX, Poloniex, BTCEX, BTCC, DigiFinex and Pionex.
KoFIU said that these exchanges conducted their illegal activities to domestic customers with Korean-language websites. The regulator also asked the Korea Communications Commission and the Korea Communications Standards Commission to block the firms’ website access to local users to prevent their unregistered business activities in Korea.
Moreover, even credit card companies will inspect and block credit-based crypto purchases offered by foregin-based VASPs.
The punishment for violating “registration duties” in Korea is a jail sentence of upto 5 years, or a maximum fine of 50 million Korean won ($38,000). The firms will also not be allowed to register as VASP in the country for an unspecified period of time.
The regulator will continue to closely monitor the market players and report authorities of any illegal business activities carried out by unregistered entities.
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