Regulators target unregistered platforms like KuCoin and MEXC to curb money laundering risks.
South Korean financial authorities have escalated their oversight of foreign crypto exchanges, compelling Apple to block domestic access to 14 apps linked to platforms operating without proper registration. The move, announced Monday by the Financial Intelligence Unit (FIU), underscores the country’s tightening grip on non-compliant virtual asset services.
Key Details:
• Targeted Exchanges: KuCoin, MEXC, and 12 unnamed platforms were flagged for failing to report operations to the FIU, violating South Korea’s anti-money laundering laws.
• Action Timeline: App removals began April 11, following a March crackdown that restricted 17 crypto-related apps via Google.
• Regulatory Framework: Foreign crypto businesses must register with the FIU under the Act on Reporting and Use of Specific Financial Transaction Information. Non-compliance risks criminal penalties.
Why It Matters:
South Korea has emerged as a global leader in crypto regulation, prioritizing user protection and financial integrity. Since 2022, the FIU has blocked 22 overseas platforms, including major names like BitMEX. This latest enforcement aligns with broader efforts to mitigate risks tied to unregulated trading, such as fraud and market manipulation.
Broader Context:
The FIU emphasized collaboration with tech giants like Apple and Google to enforce compliance. “Blocking access to unreported operators is critical to preventing money laundering and safeguarding investors,” the agency stated. Future measures may expand to website restrictions, mirroring past actions against platforms like Binance.
Industry Response:
KuCoin and MEXC have yet to comment publicly. Analysts suggest the crackdown could drive users toward locally regulated exchanges such as Upbit and Bithumb, which adhere to strict transparency protocols.
