South Korea to block access to 16 unregistered crypto companies

The Korea Financial Intelligence Unit (KoFIU) has requested investigative authorities to block 16 unregistered foreign-based Virtual Asset Service Providers (VASPs) that reportedly targeted domestic consumers by offering services in Korean.

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Fast facts

• According to a press release, these unregistered VASPs are KuCoin, MEXC, Phemex, XT.com, Bitrue, ZB.com, Bitglobal, CoinW, CoinEX, AAX, ZoomEX, Poloniex, BTCEX, BTCC, DigiFinex, and Pionex.

• KoFIU said that the 16 foreign-based VASPs were found to have business operations targeting Koreans without obtaining a registration despite notifying them in July last year about their obligation to register with the authority. 

• The KoFIU has requested the Korea Communications Commission and the Korea Communications Standards Commission to block domestic access to the websites of the unregistered VASPs.

• Transfers of virtual assets to and from the 16 unregistered entities will be blocked following an administrative guidance suspending transactions between the registered and unregistered entities.

• Credit card companies will inspect and block credit card-based virtual asset purchase and payment services offered by them to disable their use in the domestic market, the press release said. 

• KoFIU said that for illegal business activities of unregistered entities, the punishment can be a maximum of five years of imprisonment or a fine of up to KRW50 million (US$37,668) with a restriction imposed from registering as a VASP in the domestic market for a certain period of time.

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