Korea’s Regulator Takes Action Against 16 Foreign Crypto Exchanges.

Cryptocurrency is a digital payment system that isn’t controlled by a central bank and doesn’t need a central bank to verify transactions. It is a peer-to-peer system with no central hub where people can send and receive money anywhere. Payments made with cryptocurrency only exist as digital entries in a database that is kept online. 

On the other hand, traditional currencies are made from real money that can be moved and traded in the real world. When you send or receive money using a cryptocurrency, the transaction is added to a public ledger where everyone can see it. People store their cryptocurrency in digital wallets.

The word “crypto” comes from the fact that all cryptocurrency transactions are checked using encryption. Because of this, it takes a lot of technical know-how to store cryptocurrency data and send it between wallets and public ledgers. Most of the time, encryption is used to keep things safe.

Bitcoin was the first online currency. Even though it has been around for a long time, Bitcoin is still the most well-known digital currency. Speculators often drive prices through the roof because of this.

Korea's Regulator

The blockchain is a list of all public transactions and doesn’t have a central location. People who have cryptocurrency make sure it is always up to date. Cryptocurrencies are decentralised digital currencies.

Mining is the process of making new units of a cryptocurrency by using a computer to solve hard math problems that produce coins. Users can also buy the currencies from brokers, put them in “cryptographic wallets,” and use the wallets to spend or store the currencies.

If you have cryptocurrency, you don’t have anything you can touch. You have a key that lets you send a record or unit of measurement from one person to another without the help of a trusted third party.

Even though Bitcoin has been around since 2009, other cryptocurrencies and financial uses of blockchain technology are starting to appear. People will likely find more ways to use it in future years. This technology might be used in the future to buy and sell stocks, bonds, and other types of money. 

If you want to buy, sell, or trade your cryptocurrency, the exchange you choose should have enough daily trades to ensure that your holdings are somewhat liquid. This means that you can sell them at any time. Again, bigger might be better in this case. Most of the time, the most popular exchanges also have the most daily trades.

The Financial Intelligence Unit of South Korea (FIU) South Korea’s financial intelligence unit is known as the KoFIU (FIU). It is the main group in the country that fights against money laundering and the funding of terrorism (AML/CFT).

These 16 companies are Kucoin, MEXC, Phemex, XT.com, Bitrue, ZB.com, Bitglobal, Coinw, Coinex, AAX, Zoomex, Poloniex, BTCEX, BTCC, Digifinex, and Pionex. Kucoin was the first place where cryptocurrency could be bought and sold.

The government says that all 16 cryptocurrency exchanges are based outside Korea and don’t have an official presence. Still, it was found that they were running businesses for people in their area who used cryptocurrency.

The KoFIU told cryptocurrency exchanges in other countries on July 22, 2017, that they needed to register with the government. Even though this was true, the 16 companies on the list kept doing business in South Korea without first registering.

Some of them, like Binance, decided to stop doing business in the Korean market so they could follow the rules.

The government asked the Korea Communications Commission to ensure that no one in Korea could access their websites and mobile apps. The commission will privately discuss the request and decide whether to grant it. No one knows when the final decision will be made, but the process will take at least a few weeks. The exchanges can keep their trading systems running at this place.


This article is for informational purpose and may contain links to external websites which we have no control over. Users are advised to make proper research before making any financial decisions.

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Korea's Regulator
Sandra Paul
I am a content writer with over 5 years of experience in content writing. I created well researched content related to finance, cryptocurrency, stocks and metaverse. My skillset allows me to produce high-quality content that is engaging and informative. I am excited to continue providing valuable information to my readers.

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