Korean authorities are investigating activities 16 cryptocurrency birz – Bits Media

Financial Services Commission of South Korea (FSC) accused 16 foreign cryptocurrency platforms in violation of local laws and providing digital asset trading services to Korean citizens.

The FSC's Financial Intelligence Unit sent 16 cryptocurrency exchanges notice of investigation. According to the regulator, sites did not inform the South Korean authorities about providing services to citizens of the country, which is a violation of the Special Act on the provision of financial information. KuCoin exchanges included in the list, Mexc, Phemex, Bitrue, ZB, XT, Btiglobal, Poloniex, Pionex, Coin, CoinEX, AAX, ZoomEX, BTCEX, BTCC и DigiFinex,

According to the Special Act, if the platform wants to provide digital asset trading services to Korean citizens, then it must have a security management system (ISMS) and get certified by the regulator. If the act is violated, South Korean authorities can imprison the site management for up to 5 years old, or impose a fine of up to 50 Milln (about $38 000).

FSC emphasizes, that in July notified sites of the need to comply with regulatory standards, however, the exchanges continued to provide services to South Korean citizens. According to the Commission, companies have a Korean-language interface on their websites and have even held special events for their customers in the country. Besides, they actively advertise their services and provide the opportunity to purchase digital assets using credit cards.

The regulator sent a request to local departments for electronic communication systems to block the sites and applications of these cryptocurrency exchanges.

“When using such operators, you risk losing your personal data, they can be hacked, since they do not have the necessary level of protection. Besides, you could be used for money laundering. Often such companies are widely advertised, Therefore, users need to be doubly careful.", – emphasized the representative of the financial intelligence unit.

The regulator emphasized, what is the list of licensed companies, providing services for working with digital assets, available on the FSC website. To date, licenses have been received 35 companies.

Recently reported, that the South Korean tax department will crack down on tax evasion using virtual assets, such as cryptocurrencies, and platforms, working with them.