The South Korean Financial Services Commission (FSC) has accused 16 foreign cryptocurrency platforms of providing services to their residents without registration. Reported by Haber1.
These include KuCoin, MEXC, Phemex, XTcom, Bitrue, ZBcom, Bitglobal, CoinW, CoinEX, AAX, ZoomEX, Poloniex, BTCEX, BTCC, DigiFinex, Pionex.
The aforementioned companies organized events and provided services in Korean on their websites. They also offered incentives to buy cryptocurrencies with credit cards. Those who export the latter also face sanctions.
“Registered virtual asset operators may be exposed to risks such as personal information leakage and hacking. The Information Security Management System (ISMS) is not properly configured. There is a risk of money laundering”says message.
According to the Private Financial Information Act, platforms that work with South Korean citizens must be certified by ISMS and reported to the FSC Financial Intelligence Unit (FIU).
Violators face five years in prison and fines of 50 million won (~$38,150). Such companies will not be able to operate in the country for the next five years.
remember in july FSS It launched an investigation for allegedly aiding local banks in foreign transfers to crypto exchanges of $6.5 billion linked to the “kimchi premium.”
In the same month, the country’s government postponed the imposition of taxes on bitcoin traders to January 1, 2025.
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Source: Fork Log
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