Skip to main content

16 crypto platforms could be banned in South Korea

 


The Korea Financial Intelligence Unit (KoFIU) informed investigating authorities about illegal business activities of 16 unregistered Virtual Asset Service Providers (VASP). These crypto platforms operate in the country of South Korea without permission.


In a notice published on Aug. 18, KOFIU listed some known crypto platforms that violate the Information Law for Specified Financial Transactions in South Korea.


Platforms mentioned include KuCoin, MEXC, Phemex, XT.com, Bitrue, ZB.com, Bitglobal, CoinW, CoinEX, AAX, ZoomEX, Poloniex, BTCEX, BTCC, DigiFinex, and Pionex.


Unregistered crypto platforms expect tough measures

The regulator found that “(…) the 16 overseas-based VASPs engaged in business activities targeting domestic consumers.” The KOFIU justified this by saying that the VASPs “(…) offer Korean-language websites, run promotional events for South Korean consumers, and provide credit card payment options for digital assets ”.


Additionally, the agency advised users to take "extra care" when dealing with unregistered Virtual Asset Service Providers (VASPs) to avoid " damage ."


The circular follows an earlier notice dated July 22, 2021, directing overseas-based VASPs to apply for registration in order to conduct business in the country. The KoFIU stated that “the authorities intend to take the necessary measures” if that is not the case.


These actions may include notifications from the Financial Intelligence Units (FIUs) in the home countries of the 16 unregistered VASPs. In South Korea, according to the authority , registration as a VASP may also be restricted for a certain period of time as well. Furthermore, illegal business activities are punishable by a maximum of five years imprisonment or a fine of 50 million KRW (about 37,750 US dollars).


Illegal VASPs are to be disadvantaged by new regulations

In addition to suspending crypto exchanges’ operations, authorities may make cryptocurrency transfers “impossible” between registered and unregistered platforms.


The notice further states: “The KoFIU calls on the Communications Commission of Korea and the Communications Standards Commission of Korea to block domestic access to the websites of unregistered VASPs . With this, the KoFIU wants to “prohibit the use of virtual asset services offered by unregistered companies” .


In addition, according to the notice, credit card companies will also be ordered to cut ties with the "illegal" platforms , while authorities continue to monitor activity in the industry.


Just last week, Singapore-based Crypto.com acquired two South Korean crypto companies . This allows Crypto.com to operate as a registered virtual asset provider under the country's Electronic Financial Transaction Act .


In view of the crackdown, the South Korean police are also experimenting with confiscating virtual assets in other civil crimes. Be[In]Crypto previously cited reports suggesting that the country's financial regulators may also reconsider the current legislation. The FSC has already formed a task force to create a legal framework for crypto assets .


Disclaimer

All information contained on our website has been researched to the best of our knowledge and belief. The journalistic contributions are for general information purposes only. Any action that the reader takes based on the information found on our website is entirely at their own risk.

My Top Picks
Honeygain - Passive earner that pays in BTC or PayPal
MandalaExchange -The Best no KYC crypto Exchange! 
BetFury - Play And Earn BFG for daily Bitcoin and ETH dividends!
Pipeflare - Faucet that pays in ZCash and Matic, Games pay in DAI
Womplay - Mobile dApp gaming platform that rewards in EOS and Bitcoin
Cointiply - The #1 Crypto Earning Site
Torum - Join the latest Social Network and earn TRM for Free! 
LiteCoinPay - The #1 FaucetPay earner for Litecoin 
LBRY/Odysee - YouTube Alternative that lets you earn Money by viewing videos!
FaucetPay - The #1 Microwallet Platform
FREEBTC - The #1 FaucetPay earner for Satoshi's
FaucetCrypto - An earning/faucet site that pays out instantly
FireFaucet - An earning site that pays better for some than Cointiply
DogeFaucet - Dogecoin Faucet
xFaucet - BTC, ETH, LTC, Doge, Dash, Tron, DGB, BCH, BNB, ZEC, FEY - Claim every 5 minutes
Konstantinova - BTC, ETH, LTC, Doge, Dash, Tron, DGB, BNB, ZEC, USDT, FEY, 25 Claims Daily

Comments

Post a Comment

Popular posts from this blog

From offchain to offchain: Statechains meets Lightning

  Without a doubt, the most significant off-chain Bitcoin solution is the Lightning network. But in its wake, the statechain has emerged as an intriguing replacement. There is currently a proposal to link the two offchain networks. From an ocean, for example, you can see sunbeams glistening in the water, waves rippling, and possibly a jellyfish drifting toward the light. But you only see a small portion of it. The distance from the sea's surface to its bottom is hundreds of meters. It has dozens of different fish species swimming in it, crabs and starfish crawling on the bottom, shells clinging to rocks, and sea plants climbing up. A completely new world starts where your gaze diverges. You can picture a blockchain like Bitcoin, just like the sea. What you see on the outside is only a small portion of what is actually there; the set of UTXOs (coins) and transaction history that full nodes store are just the beginning of a much larger world. It's the plan, at least. With Bitcoin
Post a Comment
Read more

MSP Recovery and Tokenology aim to optimize healthcare with the help of Polygon

  MSP Recovery LLC, a Miami, US-based healthcare provider with an estimated enterprise value of $32.6 billion, is partnering with Web3 company Tokenology to jointly launch a new blockchain platform called Lifechain. Lifechain wants to leverage the verifiable and transparent nature of blockchain technology to aggregate medical care claims, medical expense reports and patient data and streamline their processing. For this purpose, MSP Recovery launched its own LifeWallet in January, which already has 1 million users. In addition to the wallet and blockchain platform, an associated crypto token called LifeCoin is also used. The press release explains that the primary purpose of the system is to enable secondary healthcare providers to more effectively bill health insurance companies for their costs. “The number of medical claims tokenized going forward will surpass $50 million per day by 2024. For this we need scalability, security and sustainability, which we have only found with Polygon
Post a Comment
Read more

British financial regulator criticizes cooperation between Binance and Paysafe

  The British financial regulator FCA has expressed concerns about the partnership between market-leading crypto exchange Binance and payment service provider Paysafe. As the British regulator complains, the partnership gives Binance access to the influential British payment network Faster Payments Service (FPS), from which the crypto exchange was previously cut off. Last June, the FCA ordered Binance to stop all business activities in Great Britain. As a result, prominent banks such as Barclays have terminated their cooperation with the leading crypto trading platform . Through the cooperation with Paysafe, Binance can now again offer deposits in British pounds sterling and transactions within the European Payments Area (SEPA). However, this fact is a thorn in the side of the FCA, as it classifies the crypto exchange as a “considerable risk factor”. However, the financial regulator sees little room for maneuver to counteract this, as the Financial Times reports . “ Paysafe understands
Post a Comment
Read more