South Korea has intensified its regulatory oversight in the cryptocurrency market to enhance transparency and protect investors.
The Financial Intelligence Unit (FIU) has begun examining several overseas cryptocurrency platforms operating unlawfully in the country. Various measures against platforms found to be non-compliant with local laws are currently under consideration, with the FIU evaluating sanctions, including access restrictions.
Strict Oversight Initiated for Unregistered Platforms
The FIU announced that platforms such as BitMEX, KuCoin, CoinW, Bitunix, and KCEX have been providing services to South Korean investors without proper registration. It was reported that these platforms have not complied with local regulations and have operated without completing the necessary registration process. Following this discovery, the FIU has initiated an official review of these platforms.
According to authorities, these platforms are reaching local investors through Korean-language websites. They are also conducting operations targeting local investors by offering marketing services and user support. Ongoing discussions among regulatory bodies aim to prevent these non-compliant activities.
FIU officials stated that they are currently working on how to block access to platforms that have not reported from abroad. Concrete steps are expected to be taken this year, with comprehensive measures being implemented. As part of the investigation, efforts to identify affected users and gather data are ongoing.
Central Bank Prepares for Digital Currency Testing
The Bank of Korea announced that it does not deem the idea of creating a digital asset reserve suitable due to volatility and financial risks. Instead, it has disclosed its focus on developing a central bank digital currency (CBDC). The trial program, planned to commence in April, is expected to last approximately three months.
This trial is viewed as a significant step towards strengthening the country’s digital payment infrastructure. The central bank will test its technological infrastructure during this process and analyze potential risks. Additionally, how citizens respond to digital currencies will also be evaluated.
South Korea is in the process of establishing a more comprehensive regulatory framework to monitor the growth of the cryptocurrency market and protect investors. Stricter rules, particularly in the fight against money laundering, have been implemented. These measures are expected to make the sector safer and more transparent.
