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South Korea Restricts Foreign Crypto Exchanges

The FIU under the Financial Services Commission has launched an investigation into overseas digital asset exchanges operating without registration in Korea.

Local South Korean news agency Chosun reported on August 12 that the Financial Intelligence Unit (FIU) under the Financial Services Commission is investigating some overseas digital asset service exchanges under the Special Financial Information Use Act. It was stated that the exchanges that were the subject of the investigation were involved in illegal marketing and promotion activities.

According to the report, the investigation covers illegal websites and marketing activities of overseas exchanges operating in Korea. According to legislation, overseas digital asset services providers must obtain approval from the FIU to engage in marketing and information activities in South Korea. They also need FIU approval to find Korean language support and Korean marketing activities for Koreans residing in Korea.

FIU announced that the exchanges subject to the investigation are MEXC, Phemex, and Kucoin. In the news, it was reported that deposits and withdrawals to the relevant exchanges would be restricted shortly.

Exchanges that provide only Twitter support and web pages to their Korean users by performing their promotional and marketing activities through social networks were not included in the scope of the investigation.