Financial Services Commission (FSC) reported 16 crypto exchanges in Korea that failed to comply with the Specific Financial Information Act. The current legal framework prohibits the employment of unreported virtual business operators. However, reports suggest that the businesses have been actively involved in sales operations, offering Korean services on their websites and hosting events to attract Korean clients. Financial Services Commission (FSC) The Financial Intelligence Unit (FIU) under the Financial Services Commission reported on the 18th of August that it had notified investigating agencies of 16 overseas virtual asset operators suspected of violating the Specific Financial Information Act (Special Act) by failing to register transactions with Koreans. According to the Special Act, the 16 operators caught were, KuCoin, MEXC, Phemex, XT.com, Bitrue, ZB.com, Bitglobal, CoinW, CoinEX, AAX, ZoomEX, Poloniex, BTCEX, BTCC, DigiFinex, and Pionex. Business entities associated with virtual assets must meet the regulatory requirements of the FIU under the Special Act. Certification of the information security management system (ISMS) is part of this process. Non-reporting can result in a five-year prison sentence or a fine of not more than 50 million won. The business is also prohibited from operating in the crypto sector for another five years. Foreign as well as local enterprises are subject to these rules. 16 Firms Were Ope...
