South Korean Authorities Claimed 16 Cryptocurrency Companies In The Country Are Working Without Registry!

South Korea’s anti-money laundering agency says it operates 16 foreigners operating in the country without proper regulatory approval, according to a statement released on Thursday. cryptocurrency company under the spotlight.

South Korean Finance Officials Report 16 Cryptocurrency Companies Working Off The Record

The Korean Financial Intelligence Unit (KoFIU), part of South Korea’s Financial Services Commission (FSC), said firms advertise and offer cryptocurrencies to Koreans without proper registration.

Companies that the agency says are engaged in “illegal commercial activities” include KuCoin, MEXC, Phemex, XT.com, Bitrue, ZB.com, Bitglobal, CoinW, CoinEX, AAX, ZoomEX, Poloniex, BTCEX, BTCC, DigiFinex and Pionex.

your country bitcoin and the registration requirement for crypto firms came into effect in September with the enactment of the Financial Transaction Reports Act.

Efforts to suppress the industry intensified after the collapse of Terraform Labs, which was founded by Korean Do Kwon in May.

Since Terra’s collapse, prosecutors have raided seven exchanges. Earlier this month, the FSC said it would help accelerate new rules to rein in the crypto industry.

KoFIU informed the authorities that 16 companies allegedly violated their “registration duties” and stated that it plans to alert the financial authorities in the countries where the companies are located.

Violation of registration requirements carries a maximum prison sentence of five years or a fine of up to 50 million South Korean won ($38,000). Firms will also not be allowed to register as a virtual asset service provider (VASP) in the country for an unspecified period.

The statement made by the competent authority included the following statements:

“KoFIU has requested the Korea Communications Commission and the Korea Communications Standards Commission to block domestic access to websites by unregistered VASPs to prevent the use of virtual asset services provided by unregistered entities.”

*Not investment advice.