- The Financial Intelligence Unit blocked 14 unregistered crypto apps in South Korea.
- Bloomberg identifies KuCoin and MEXC as affected exchanges.
- Market impacts remain minimal; regulatory pressures intensify globally.
The Financial Intelligence Unit (FIU) of South Korea targeted unregistered overseas crypto operators by blocking 14 related applications on Apple’s platform, as of April 11. The action aims to curb money laundering risks and ensure compliance with local financial laws.
Following the FIU’s directive, key overseas exchanges including KuCoin and MEXC were affected by the block. This initiative is part of South Korea’s Act on Reporting and Use of Specific Financial Transaction Information. Unregistered activities face potential criminal penalties.
South Korea Blocks 14 Unregistered Crypto Apps
Foreign virtual asset businesses must notify the Financial Intelligence Unit in compliance with reporting requirements. Unreported business activities will lead to criminal penalties. — Financial Intelligence Unit (FIU), Regulatory Authority, South Korea, source
Financial impacts involve discouragement of cross-border investments in unregistered entities. KuCoin and MEXC’s market activities could experience changes, especially among users depending on apps within South Korea.
South Korea’s government reiterated the importance of compliance for virtual asset entities. The FIU will continue blocking unregistered platforms and websites, highlighting user safety and financial integrity concerns.
KuCoin Valuation Drops Amid Regulatory Crackdown
Did you know? South Korea previously restricted 16 operators in 2022 and 6 in 2023, demonstrating its persistent regulatory stance.
As per CoinMarketCap, KuCoin Token (KCS) valued at $10.42, reflects a -6.89% 30-day price change. With a market cap of 1.30 billion and 200 million max supply, its trading volume noted a -37.78% shift recently.
The Coincu research team suggests that sustained regulatory pressures could lead to more global collaborative efforts. These actions could tighten authentication requirements and advance technological solutions to safeguard investors.
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