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South Korea eyes KuCoin, BitMEX in crypto exchange crackdown

South Korean authorities are reportedly looking into blocking crypto exchange platforms that may have operated without adhering to the requirements set by the country’s financial regulator. 

On March 21, local media Hankyung reported that the Financial Intelligence Unit (FIU) of the Financial Services Commission is considering sanctions against crypto exchanges for allegedly operating in the country without reporting as an operator to the appropriate regulators. 

South Korean financial authorities require crypto exchanges to report to regulators as virtual asset service providers (VASPs) under the country’s Specified Financial Information Act. 

The FIU is investigating a list of exchanges and is conducting consultations with related agencies. The regulator is also considering sanctions, such as blocking access to the exchanges, as they begin to prepare countermeasures. 

Exchanges operated without VASP reports

The list of exchanges that have allegedly provided services to South Koreans without the appropriate VASP reports includes BitMEX, KuCoin, CoinW, Bitunix and KCEX. The exchanges reportedly provided marketing and customer support to Korean investors without going through the country’s compliance process. 

Under the country’s laws, operators of crypto sales, storage, brokerage and management are required to report to the FIU. If exchanges don’t comply, their business will be considered illegal and subject to criminal penalties and administrative sanctions. 

An FIU official said in the report that measures to block access to the exchanges included in the list are being reviewed. The official said the financial regulator is currently consulting with the Korea Communications Standards Commission, the regulator in charge of the internet, on how they can block access to the exchanges. 

Related: Wemix denies cover-up amid delayed $6.2M bridge hack announcement

South Korean exchanges face scrutiny 

Apart from foreign exchanges, South Korean crypto exchanges are also facing scrutiny over suspicions and rumors of financial misconduct. 

On March 20, prosecutors raided Bithumb following suspicions that its former CEO, Kim Dae-sik, embezzled company funds to purchase an apartment. The authorities suspect that the exchange and its executive may have violated some financial laws during the apartment purchase. However, Bithumb responded that Kim had already taken a loan to repay the funds. 

In addition, rumors of intermediaries getting paid to list projects on Bithumb and Upbit surfaced. Citing anonymous sources, Wu Blockchain said projects claimed to have paid intermediaries millions to get listed on the exchanges. 

Upbit responded, demanding the media outlet to disclose the list of digital asset projects that paid brokerage fees. 

Magazine: Crypto fans are obsessed with longevity and biohacking: Here’s why

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Reform UK’s new immigration plans would have been seen as extreme just a few years ago

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Reform UK's new immigration plans would've been extreme just a few years ago

Mass deportations. Prison camps. Quitting the Refugee Convention and the UN Convention on Torture.

A shrug of the shoulders at the idea of the UK sending asylum seekers back to places like Afghanistan or Eritrea, where they could be tortured or executed.

“I’m really sorry, but we can’t be responsible for everything that happens in the whole of the world,” says Nigel Farage.

“Who is our priority?”

The Reform UK leader has been setting out his party’s new plans to address illegal migration in an interview with The Times newspaper – a set of policies, and a use of language, which would surely have been seen as extreme just a few years ago.

Only last autumn the Reform leader repeatedly shied away from the concept of “mass deportations”, describing the idea as “a political impossibility”.

But now he’s embraced Trump-style immigration rhetoric.

More on Asylum

It’s not surprising that Reform want to capitalise on the outpouring of public anger over the use of hotels to house asylum seekers. The policy was started by the previous Conservative government, in response to housing shortages – and Labour has failed to make significant progress on its promise to stop it.

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Asylum hotel protests set to rise

But all the major parties have shifted firmly to the right on this issue.

There’s been very little political criticism of the aggressiveness of Farage’s policy suggestions, and the premise that the UK should no longer offer sanctuary to anyone who arrives here illegally.

The Tory response has been to complain that he’s just copying the ideas they didn’t quite get round to implementing before calling the general election.

“Four months late, this big reveal is just recycling many ideas the Conservatives have already announced,” said Chris Philp MP, the shadow home secretary.

“Labour’s border crisis does urgently need to be fixed with tough and radical measures, but only the Conservatives have done – and will continue to do – the detailed work to deliver a credible plan that will actually work in practice.”

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Certainly, the ambition to arrest and deport everyone who arrives in a small boat – regardless of whether or not they have legitimate grounds for asylum – has clear echoes of the Tories’ Rwanda policy.

Despite spending £700m on the controversial idea, only four volunteers were ever sent to Kigali before it was cancelled by Sir Keir Starmer, who branded it a gimmick.

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Reform putting ‘wheels in motion’ for migrant hotel legal challenges

Labour have suggested they’ve diverted Home Office resources that were freed up by that decision into processing asylum claims more quickly and increasing deportations.

They’re hoping tougher action against the criminal gangs and the new “one in one out” deal with France will help deter the number of people crossing the Channel in small boats in the first place, currently at record levels.

But rather than offering any defence of the principle of offering asylum to genuine refugees – Labour’s Angela Eagle MP, the border security minister, has also focused on the feasibility of Farage’s policies.

“Nigel Farage is simply plucking numbers out of the air, another pie in the sky policy from a party that will say anything for a headline,” she said.

“We are getting a grip of the broken asylum system. Making sure those with no right to be here are removed or deported.”

Even the Liberal Democrats have taken a similar approach.

“This plan sums up Nigel Farage perfectly, as like him it doesn’t offer any real solutions,” they said.

“Whilst Farage continues to stoke division, we Liberal Democrats are more interested in delivering for our local communities.”

It’s been left to the Refugee Council to defend the principle of asylum.

“After the horrors of the Second World War, Britain and its allies committed to protecting those fleeing persecution,” said CEO Enver Solomon.

“The Refugee Convention was our collective vow of ‘never again’ – a legal framework ensuring that people who come to our country seeking safety get a fair chance to apply for asylum.

“That commitment remains vital today. Whether escaping conflict in Sudan or repression under regimes like the Taliban, people still need protection.

“Most find refuge in neighbouring countries. But some will seek sanctuary in Europe, including Britain.

“We can meet this challenge by upholding a fair, managed system that determines who qualifies for protection and who does not.”

But with Reform leading in the polls, and protests outside hotels across the country – politicians of all stripes are under pressure to respond to public frustration over the issue.

A recent YouGov poll found half of voters now believe immigration over the last ten years has been mostly bad for the country – double the figure just three years ago.

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While the government has made some progress in reducing the cost of asylum hotels – down from £8.3m a day in 2023/4 to £5.77m a day in 2024/5 – the overall numbers accommodated in this way have gone up by 8% since Labour took charge, thanks to the surge in new claims.

Sir Keir has previously said he won’t make a promise he can’t keep.

But current efforts to end the use of asylum hotels by 2029 are clearly not working.

That’s a credibility gap Farage is more than ready to exploit.

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Labour may have walked into political trap over housing asylum seekers in hotels

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Labour may have walked into political trap over housing asylum seekers in hotels

Has the government just walked into a giant political elephant trap by attempting to reverse the Epping hotel ruling?

Already on the back foot after a judge ordered the Bell Hotel to be emptied of asylum seekers, the Home Office is now being attacked for trying to appeal that decision.

“The government isn’t listening to the public or to the courts,” said Tory shadow home secretary Chris Philp.

The politics is certainly difficult.

Government sources are alive to that fact, even accusing the Tory-led Epping Council of “playing politics” by launching the legal challenge in the first place.

The fact Labour councils are now also considering claims undermines that somewhat.

After all, the party did promise to shut every asylum hotel by the next election.

More on Asylum

Figures out this week showed an increase in the number of migrants in hotels since the Tories left office.

And now, an attempt to keep people in a hotel that’s become a flashpoint for anger.

That’s why ministers are trying to emphasise that closing the Bell Hotel is a matter of when, not if.

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What do migration statistics tell us?

“We’ve made a commitment that we will close all of the asylum hotels by the end of this parliament, but we need to do that in a managed and ordered way”, said the security minister Dan Jarvis.

The immediate problem for the Home Office is the same one that caused hotels to be used in the first place.

There are vanishingly few accommodation options.

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Asylum hotel closures ‘must be done in ordered way

Labour has moved away from using old military sites.

That’s despite one RAF base in Essex – which Sir Keir Starmer had promised to close – seeing an increase in the number of migrants being housed.

Back in June, the immigration minister told MPs that medium-sized sites like disused tower blocks, old teacher training colleges or redundant student accommodation could all be used.

Until 2023, regular residential accommodation was relied on.

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But getting hold of more flats and houses could be practically and politically difficult, given shortages of homes and long council waiting lists.

All of this is why previous legal challenges made by councils have ultimately failed.

The government has a legal duty to house asylum seekers at risk of destitution, so judges have tended to decide that blocking off the hotel option runs the risk of causing ministers to act unlawfully.

So to return to the previous question.

Yes, the government may well have walked into a political trap here.

But it probably had no choice.

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Brazil’s crypto tax grab signals the end of an era

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Brazil’s crypto tax grab signals the end of an era

Brazil’s crypto tax grab signals the end of an era

Brazil’s 17.5% crypto tax signals a global shift as governments eye digital assets for revenue, ending the era of tax-friendly crypto investing worldwide.

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