Recently, South Korean regulators have ordered Apple Store and Google Play to clamp down access for 14 unlicensed crypto exchanges. The Financial Service Commission (FSC) also released a list of unregistered platforms that were blocked in Google’s app store. This big move caused a wider crackdown on major crypto exchange platforms like Kucoin, as they are not registered with South Korean regulations. However, the ban is not permanent. In an exclusive interview, KuCoin’s CEO said that KuCoin may reenter the country after securing compliance. Let’s dive in and dig deeper.

Why Regulators Banned Global Players From Local Markets?

On April 14, the Financial Intelligence Unit (FIU) stated that the applications belonging to foreign Virtual Asset Service Providers (VADPs) that are operating without registering with regulators are banned. This includes global players like KuCoin and MEXC. It also stated that applications that are operated for financial transactions, foreign crypto exchanges, or businesses that seek to operate in South Korea should be registered with FIU. Apps that are being operated without proper authorization will be considered illegal virtual asset activities. This act protects users from money laundering risks. This is not the very beginning of FIU taking action against unregistered platforms. In 2022, around 16 companies’ access was blocked, and six more in 2023. 

What KuCoin’s New CEO Planning?

While KuCoin is unavailable in South Korea, CEO Wong is taking steps to reenter the country. In an interview, BC Wong, the new CEO of KuCoin, said that the crypto exchange is planning to reenter the South Korean market after securing compliance with major jurisdictions. Wong also confirmed that KuCoin representatives began to speak with the country’s regulators. The CEO also mentioned that the regulators are strict and could drive global players away from South Korea’s crypto market. If KuCoin reenters the local market, this global player could soon gain more traction and be spotlighted in the crypto landscape.