KuCoin Plans South Korea Return After Meeting Global Compliance
2min read KuCoin, a prominent cryptocurrency exchange, is strategizing a comeback to the South Korean market after successfully meeting key global compliance regulations. The exchange has been actively engaging with regulators in various regions, including the United States, European Union, China, and India, to ensure it adheres to local laws and standards. This move comes after South Korea implemented strict measures in early 2022, banning 22 crypto apps, including KuCoin, for non-compliance with regulatory requirements.
South Korea's Financial Services Commission (FSC) took decisive action by forcing Google and apple to remove unregistered crypto trading platforms from their app stores. This regulatory crackdown was part of a broader effort to enforce domestic cryptocurrency legislation and protect users from unregulated exchanges. KuCoin was among the platforms affected, leading to its temporary exit from the South Korean market.
Despite this setback, KuCoin's CEO, BC Wong, has expressed the company's commitment to reentering the South Korean market. Speaking at the Token2049 event in Dubai, Wong emphasized that KuCoin remains dedicated to operating within the Korean market, but only after fully satisfying all regulatory requirements in major jurisdictions. The exchange aims to demonstrate a strong performance in other territories before reclaiming its presence in South Korea, mirroring the approach of traditional finance by achieving key regulatory clearances for business expansion.
Wong also noted that South Korean regulations might be designed to give local companies an advantage over foreign competitors. This observation underscores the challenges faced by international exchanges seeking to operate in the region. Additionally, KuCoin is navigating specific obstacles in the European market, where the implementation of the Markets in Crypto-Assets (MiCA) regulation has led to delays and confusion for licensed companies due to varying interpretations of the rules by country-level regulators.
In South Korea, the government continues to tighten oversight of digital asset providers. The Financial Intelligence Unit (FIU) is assessing potential punishments for unregistered foreign currency exchanges, requiring all crypto companies operating in Korea to become Virtual Asset Service Providers (VASPs) under the Specified Financial Information Act. Non-compliance may result in system access restrictions and legal prosecution.
On March 26, the FSC published a list of 22 unregistered digital platforms, including KuCoin, mexc, Phemex, XT.com, digifinex, Poloniex, coinex, BitMart, and Pionex. These exchanges were banned from operating in South Korea, with Google restricting access to seventeen of them from its app store. This move effectively prevents South Korean users from downloading and updating these apps, further emphasizing the government's commitment to enforcing regulatory compliance.
KuCoin's future plans involve increasing global compliance standards to facilitate its reentry into the South Korean market. By engaging with regulators and adhering to strict compliance measures, KuCoin aims to recover its footprint in the South Korean crypto market. The extended closure presents an opportunity for KuCoin to contribute to the development of better digital asset regulations, ultimately enhancing participation in South Korea's cryptocurrency economy.
