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- KuCoin aims to return to South Korea after achieving compliance in key global markets.
- Talks with South Korean regulators have already begun.
- Strict enforcement has shut down unregistered exchanges in South Korea.
Cryptocurrency exchange KuCoin is preparing a potential comeback to South Korea. Earlier this year, local regulators took strong action against several global exchanges. In March and April, the South Korean Financial Services Commission ordered Google and Apple to block access to exchanges not officially registered in the country. KuCoin, among others, experienced the impact.
This move was not in isolation. It came after the tightening of regulations designed to safeguard domestic users and ensure compliance by regulators. Virtual asset providers must register before providing services under South Korea’s Specified Financial Information Act.
At the time, KuCoin was unregistered and was forced to leave the market. The consequence came almost immediately as app stores removed seventeen exchanges, including several popular global sites. South Korean customers found fewer portals to global crypto markets, and KuCoin, once so familiar, cut off access to its South Korean users.
Compliance Across Jurisdictions is Crucial
In spite of its forced departure, KuCoin has not abandoned South Korea. The new CEO of the company, BC Wong, stated that the exchange is preparing to return. The company is prioritizing approval in major areas first.
They are the United States, the European Union, China, and India. Regulatory approval in these markets is what Wong sees as crucial. KuCoin is in the process of establishing itself as compliant in all jurisdictions.
Only after meeting these criteria will the exchange make the official move back into South Korea, as stated by Wong. The process is in progress. KuCoin has already initiated conversations with regulators in South Korea. The firm is determined to fill in the gaps in the law that led to its removal. Instead of hurrying, KuCoin is building on a solid foundation before continuing operations in the nation.
KuCoin’s Future Depends on Compliance and Trust
South Korea is not by itself in demanding more stringent standards. Even in the EU, there are challenges to be faced by KuCoin. MiCA regulation seeks to harmonize regulations across the member countries.
Oftentimes, national regulators will interpret those regulations in different ways, though. It causes delays, even with compliant platforms. It is indicative of the issue of global regulation of crypto on a broader note.
These companies like KuCoin need to deal not only with regulations but with how each country chooses to prosecute the same. Even in the hope that there will be re-entry into South Korea, there are global developments that have to take precedence.
The South Korean users will instead resort to domestic exchanges in the short term. A return of KuCoin will depend on whether it is able to meet stringent global regulations and win back the trust of local regulators.
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