South Korea targets unregistered crypto exchanges. What’s next?

South Korean authorities are considering sanctions against crypto exchanges like KuCoin and BitMEX for providing services to South Korean users without the required registration as Virtual Asset Service Providers (VASPs). According to the country’s Act on the Reporting and Use of Specific Financial Transaction Information, operators involved in crypto sales, storage, brokerage, and management are required to register with the Financial Intelligence Unit. Failure to comply is considered illegal and subject to both criminal and administrative penalties. The agency is currently reviewing measures such as blocking access to these exchanges and is consulting with the Korea Communications Standards Commission regarding the enforcement of these actions.