There are numerous overseas virtual asset exchanges operating without registration with the Financial Services Commission (FSC), requiring investors to stay alert. The virtual asset industry reported on August 4^th that a few overseas virtual asset exchanges, such as KuCoin, MEXC, and Phemax, provided illegal services on their website, forgoing registration with the FSC. Partner attorney Ohoon Kwon advised, “Under the Act on Reporting and Using Specified Financial Transaction Information, foreign exchanges must also be registered to operate. If damage occurs at such fraudulent exchanges, it is difficult to seek compensation for they are not registered. Hence, it is best to avoid using them.” [DigitalToday 08.05.22]

URL: Investors to Stay Alert — Fraudulent Overseas Virtual Asset Exchanges Operating in Korea