The financial authorities identified the unreported business activities of overseas cryptocurrency operators KCEX and QXALX based on continuous monitoring and user reports.
The Financial Services Commission noted on the 7th that it had informed investigative agencies of illegal activities related to two unreported overseas cryptocurrency operators and said, "We plan to implement a domestic access blocking measure for websites and mobile applications."
An unreported cryptocurrency operator refers to a business that is not subject to supervision and management by the financial authorities. To operate as a cryptocurrency business in Korea, one must report to the Financial Intelligence Unit (FIU) of the Financial Services Commission. Operating without reporting can lead to insufficient measures for user protection and anti-money laundering, exposing individuals to risks such as data breaches, hacking, and fraud.
The financial authorities stated, "Information encouraging the use of unreported cryptocurrency operators is being disseminated through various media, such as blogs, open chats, and social media," and emphasized that, given the prevalence of false and exaggerated information, users must verify whether the cryptocurrency operators they are transacting with are legally registered. As of today, there are 27 registered cryptocurrency operators, and the list can be checked on the FIU website.
Users who confirm unreported business activities can report to the FIU, the Digital Asset Exchange Joint Council, the police, and others. The Digital Asset Exchange Joint Council conducts preliminary material investigations based on reports of unreported illegal business activities.