The Korea Financial Intelligence Unit has reported 16 foreign virtual asset businesses, including MEXC and KuCoin, to investigators. According to the unit, they are violating the Act on Reporting and Using Specified Financial Transaction Information by doing business in South Korea without registration.
The unit notified the foreign operators of their duty to report in July last year. However, their non-compliance has continued for over a year, the countries to which they belong will be notified of this fact, and the operators will face up to five years in prison or a fine of up to 50 million won.
Their domestic registration will be banned for a while, and the unit already asked the Korea Communications Standards Commission and the Korea Communications Commission to block consumer access to the operators.
Credit card companies are taking measures to block credit card-based purchase and settlement there. In addition, the unit will disconnect them from registered virtual asset operators so that cryptocurrencies cannot be transferred between them.