Authorities in South Korea are set to impose penalties on cryptocurrency exchanges that are operating unlawfully within the nation, as reported by a business news outlet on Friday.
The Financial Intelligence Unit (FIU) has identified several exchanges that lack registration as Virtual Asset Service Providers (VASPs) as potential targets for sanctions, according to the report.
The exchanges under scrutiny—BitMEX, KuCoin, CoinW, Bitunix, and KCEX—have been operating Korean-language websites without the necessary reporting to the FIU. Consequently, they are deemed illegal businesses under national regulations.
“We are currently considering blocking access to unreported foreign exchanges that are offering services to local investors, in consultation with the Korea Communications Standards Commission,” stated an official from the FIU, according to the report.
“We are compiling cases of harm and related information to enhance communication between authorities, and we anticipate concrete actions to be taken later this year.”
BitMEX, KuCoin, and CoinW did not respond to a request for comment.
Last month, the South Korean exchange Upbit faced a temporary ban preventing new customers from transferring assets to its platform for three months due to failure to meet its regulatory obligations.
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