FSC detects two overseas unregistered virtual asset service providers

The Financial Services Commission (FSC) has detected two overseas virtual asset service providers that continued to operate in Korea without registration and has reported the relevant information to investigative authorities.

On the 8th, the Korea Financial Intelligence Unit (KoFIU), an affiliate of the FSC, announced that it had identified that overseas virtual asset service providers KCEX and QXALX had been conducting illegal business targeting domestic users without Information Security Management System (ISMS) registration. After identifying these illegal activities through ongoing monitoring and user reports, they notified investigative authorities.

FIU also plans to simultaneously implement measures to block domestic access to the websites and mobile apps of these providers. The Digital Asset Exchange Joint Consultative Body (DAXA) has also launched a fact-finding investigation based on related reports.

The FIU stated, "We will continue to work in cooperation with relevant agencies to monitor unregistered illegal business activities and take actions to protect users and prevent money laundering."