BitMEX and KuCoin Face South Korean Sanctions Over Unlicensed Operations

With new rules reshaping South Korea’s crypto landscape, regulators are moving swiftly against unregistered foreign exchanges.

On the radar, according to local sources:

• BitMEX, 
• KuCoin, 
• CoinW, 
• Bitunix,
• KCEX 

What ties them together? A visible push into the Korean market — from native-language UX to aggressive advertising and direct user support — all without regulatory compliance.

We’re gathering evidence and working to streamline coordination between agencies — and we’re aiming for visible enforcement this year,

said a Financial Intelligence Unit official.

Under current law, all cryptocurrency trading companies must obtain a VASP license. Operating without one is considered illegal and may lead to both criminal and administrative penalties. Regulators are already cooperating with other agencies, including the Communications Standards Commission, to block access to non-compliant websites.

Check this out: Sanctions Failing? Crypto Activity in Sanctioned Regions Is Booming

By law, crypto trading platforms operating in South Korea must hold a VASP license. Those that don’t are breaking the law — and now face criminal charges, fines, and website bans.

Regulators are moving quickly, already teaming up with the Communications Standards Commission to begin blocking access to unauthorized sites.

Crackdown Reaches Home Turf

Alongside increasing scrutiny of foreign crypto platforms, local operators are now facing tighter enforcement. South Korean police have executed a raid at the headquarters of Bithumb, one of the nation’s leading exchanges.

The enforcement is part of an ongoing investigation into suspected financial irregularities involving Bithumb’s former CEO.

Wu Blockchain's report sent shockwaves through the market, alleging that top exchanges like Upbit and Bithumb demanded under-the-table payments for listings — effectively bribes.

Both firms denied wrongdoing and called for an official investigation, but the fallout was immediate: renewed fears of corruption and a fresh blow to investor trust in the South Korean crypto sector.

Read on: South Korea’s Central Bank Says No to Bitcoin Reserve

As the global push for crypto regulation accelerates, South Korea’s decisive stance could set the tone for the entire Asian region.

Regulators have made their intent clear: it’s not just about shielding investors, but about creating a market where fairness and accountability are non-negotiable.