Bitmex, it is said that Cocoin between stock exchanges face sanctions in Korea.

The South Korean financial authorities are considering imposing sanctions on many encrypted exchanges that have failed to comply with local regulations.

According to a report From the local Korea’s daily economic media, it includes the exchange of Bitmex, Kucoin, Coinw, Bitunix and KCEX.

Korea for the exchange of encryption

The Financial Intelligence Unit (FIU) of the South Korea Financial Services Committee said that the coding trading platforms abroad are illegally operating in the country because they failed to report virtual asset service providers (VASPS) under the specific financial information law.

The Special Financial Transactions Law states that the entities involved in the trading of encryption, storage and management in South Korea must be compared to their activities officially to FIU. Failure to do this can attract criminal punishment and administrative penalties because companies will consider illegal acts.

In addition, these stock exchanges operate web sites in Korean without providing marketing and supporting customers for South Korean investors. As a result, FIU is now investigating its activities, evaluating appropriate procedures with relevant organizations, and thinking strongly about measures such as prohibiting access to the site.

“We are currently reviewing the prevention of access to the non -reported foreign exchanges that provide services to local investors through consultation with the Korean Communications Standards Committee. We are organizing damage and relevant data to enhance communication between the authorities, and we expect to see concrete measures this year,” an official at the University of FIU said.

A continuous suppression campaign on encryption platforms

This is not the first time that the financial authorities in South Korea have moved to a punishment or prevent an investor in unacceptable encryption exchanges. In September 2021, FIU asked more than 60 exchanges that could not meet the domestic anti -money laundering rules (AML) and registration requirements to close its services and leave the country.

At that time, there were only four trading platforms, including APBIT, Bithumb, Coinone, and Korbit, working completely, while about 28 others, who have received security certificates, can provide certain services without settling a victory.

Moreover, in 2022, FIU requested the Korea Communications Standards Committee to prevent reaching 16 exchanges abroad that failed to report its operations as Vasps. The organizational agency also joined local card companies to prevent encryption purchases and payment services provided by these platforms.

Earlier this year, fiu open There are only 31 encrypted companies registered in South Korea, a decrease of 26 % from 42 in 2024. With the latest campaign, this number must shrink further.