Based on the Act on Reporting and Using Specified Financial Transaction Information (hereinafter “the Act”) which took effect last September, VASPs must register with the Financial Services Commission. Providing Korean language services or conducting marketing activities in Korea without registration is illegal and punishable by imprisonment of up to five years or a fine of up to 50 million KRW. Partner attorney Ohoon Kwon commented on MEXC’s incorrect guidance on the “Travel Rule” which followed the withdrawal restriction of Bithumb. He said, “Such act by MEXC can be charged with the crime of spreading false information, violating the Monopoly Regulation and Fair Trade Act, in addition to the Act. It is difficult to punish overseas exchanges as doing so requires cooperation from foreign regulatory authorities. However, if there is a sales agency in Korea, it can be sanctioned accordingly.” [Digital Today 08.16.22]

URL: Illegal Virtual Asset Exchanges Expunge Their Online Communities Before Investigation Starts