- KuCoin plans South Korea comeback after meeting key global regulations.
- South Korea bans 22 crypto apps, including KuCoin, over compliance.
KuCoin, a well-known cryptocurrency exchange, is considering a return to the South Korean market. KuCoin implemented this update because it successfully satisfied compliance rules across different key regions that include the United States and European Union as well as China and India. The company started preliminary talks with South Korean regulators to work on their future strategy.
South Korea Pushes Out Unregistered Crypto Exchanges
During the first months of 2022, South Korea implemented firm measures to target unidentified crypto trading platforms. The Financial Services Commission of South Korea forced Google and Apple to deactivate apps during March and April that were not registered with government authorities. KuCoin became one of the platforms which local app stores removed from their platforms because of these regulatory actions. The authorities undertook this action within their larger strategy to carry out domestic cryptocurrency legislation and safeguard user protection from unrestricted cryptocurrency exchanges.
CEO BC Wong stated that KuCoin plans to reenter South Korea although the company faced a recent setback there. At the Token2049 event in Dubai, Wong appeared to declare the company maintains its dedication to entering and operate within the Korean market. The company plans to return to South Korea only after satisfying complete regulatory requirements from prominent jurisdictions.
According to Wong, the exchange has adopted an organized operation method. The exchange intends to demonstrate a solid performance in other territories before reclaiming its presence in South Korea. The company uses this approach due to its parallel with main finance by achieving key marketplace regulatory clearance for business expansion. According to Wong South Korean regulations might exist to permit local companies to gain an advantage over foreign competitors.
During this period, KuCoin operates under specific obstacles in the European market. The EU CEO of KuCoin’s operations Oliver Stauber discussed the difficulties companies encounter when meeting the requirements of MiCA. The generation of MiCA aims to establish a common regulatory framework which spans across all member states of the EU. According to Stauber certain regulators at the country level continue to apply their own interpretations of the rules. As a result, even licensed companies face delays and confusion in implementation.
South Korea Cracks Down on Non-Compliant Crypto Apps
Back in South Korea, the government is tightening oversight of digital asset providers. The Financial Intelligence Unit (FIU) currently assesses potential punishments for unregistered foreign currency exchanges. Every crypto company that operates in Korea needs to become a Virtual Asset Service Provider (VASP) according to the Specified Financial Information Act. The failure to comply with regulations may result in system access restrictions alongside legal prosecution.
On March 26, the FSC published a record featuring 22 unregistered digital platforms. Among the listed platforms Google barred seventeen which had previously been restricted from its app store. Through this move South Korean users now cannot download and update their apps since they face complete platform restrictions. The FSC banned exchanges including KuCoin as well as MEXC, Phemex, XT.com, DigiFinex, Poloniex, CoinEx, BitMart, and Pionex from operating in South Korea.
Future plans for KuCoin rely on increasing global compliance standards to help them enter South Korea again. The exchange uses regulatory engagement and strict compliance to seek recovery of its South Korean crypto market footprint. The extended closure represents KuCoin’s potential to create better digital asset regulations that will enhance participation throughout South Korea’s cryptocurrency economy.
