Kofiu Has Documented 16 Abroad VA Exchanges That Operated With no Registration to the Investigation Agencies (Updated September 2022) #Kofiu #Reported #Abroad #Exchanges #Operated #Registration #Investigation #Organizations #Up to date #September


[Executive Summary]

◼ The Korea Economical Intelligence Device (“KoFIU”) claimed 16 overseas VA exchanges, which operated without a VASP registration, to the investigation agencies for violating the Act on Reporting and Employing Specified Monetary Transaction Details. In addition, the KoFIU announced that it programs to report all those exchanges to the fiscal intelligence units (“FIUs”) of the corresponding nations.

The Korea Monetary Intelligence Device (“KoFIU”) documented 16 overseas VA exchanges, which operated devoid of a VASP registration, to the investigation businesses for violating the Act on Reporting and Employing Specified Financial Transaction Details (“the Law”). In addition, the KoFIU declared that it designs to report those exchanges to the FIUs of the corresponding international locations overseas.

– List of the 16 overseas VA exchanges

: MEXC, KuCoin, Phemex, XT.com, Bitrue, ZB.com, Bitglobal, CoinW, CoinEX, AAX, ZoomEX, Poloniex, BTCEX, BTCC (formerly BTC China), DigiFinex, and Pionex

The KoFIU deemed that the earlier mentioned exchanges have operated targeting Korean nationals, contemplating their provision of web sites in the Korean language, hosting occasions to draw in Korean consumers, and provision of a payment selection with credit history playing cards for getting virtual belongings.

According to the Legislation, firms ought to meet sure specifications, this kind of as ISMS certification, and report accordingly to the relevant authorities to run digital asset organization in Korea. The KoFIU has formerly notified various periods that overseas exchanges talked about above are functioning companies that need specified experiences or registration in accordance to the Regulation. Even so, the organizations continued their enterprise devoid of any suitable reviews.

Dependent on Report 6 of the Law, even if the motion is taken overseas, if the action has an effect on Korean nationals in the jurisdiction of Korea, the motion is however subjected to the regulation.

The KoFIU requested the pertinent institutions (these types of as the Korea Communications Commission) to block entry to the 16 exchanges’ internet sites and programs from Korea.

It was also introduced that the authorities plan to check and block overseas VASPs from delivering a payment services/option with a credit rating card for purchasing virtual property in Korea. (For reference, Korean card companies have banned the order of virtual assets making use of credit score cards considering the fact that 2018.)

Korean VA exchanges have now limited withdrawals of MEXC, Phemex, and KuCoin. It is expected that they will also subsequently prohibit deposits to and withdrawals from the earlier mentioned exchanges.

Korea’s digital asset industry, especially digital asset-related corporations, appears to be less than shut scrutiny just after the Terra-Luna incident. Sector members are advised to consider additional safety measures in selecting virtual asset exchanges to lower prospective challenges as the authorities’ investigation proceeds.

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