KuCoin’s Reentry Plans in South Korea
KuCoin, a prominent cryptocurrency exchange, indicated its intention to potentially reestablish operations in South Korea, following its suspension in the region. On March 21, regulators in South Korea mandated that Google Play restrict access to non-compliant crypto exchanges. Shortly after, on April 11, the Financial Services Commission (FSC) extended similar orders to Apple, prohibiting unregistered crypto platforms from operating. As a result, KuCoin, among those affected by this enforcement, has paused its services in South Korea but remains interested in complying with the local regulations to resume activities.
Compliance and Regulatory Landscape
In an exclusive dialogue with Cointelegraph, the newly appointed CEO of KuCoin, BC Wong, shared the company’s roadmap for reentry into the South Korean market. Wong expounded that before reinstating operations within South Korea, KuCoin intends to first align itself with regulatory standards in more extensive markets including the United States, the European Union, China, and India, potentially followed by Australia. He articulated,
“The resource is there. We need to go one by one. Our strategy will always be that major jurisdictions come first.”
Wong also disclosed that KuCoin is already in communication with regulatory bodies to navigate compliance issues. He highlighted that the regulatory landscape for cryptocurrency has become more stringent compared to three years prior, suggesting that this shift may be an attempt to restrict international players from the local marketplace, allowing domestic exchanges to flourish.
“I’m not entirely convinced if regulators aim to regulate the global market or simply intend to eliminate global competitors from their market, clearing the path for their local exchanges,”
Wong remarked.
Challenges in the European Union
Meanwhile, KuCoin’s operations in the European Union face their own set of hurdles, as noted by Oliver Stauber, the new CEO for KuCoin in the EU. Stauber, who has previously served as the chief legal officer for Bitpanda, addressed how the EU’s Markets in Crypto-Assets Regulation (MiCA) presents complications despite its purpose of harmonizing the regulatory framework across member states. He indicated that varying interpretations of these laws across jurisdictions often complicate operational processes, as some regions may challenge the validity of licenses issued elsewhere. Stauber remarked,
“While MiCA was designed to create a level playing field in crypto throughout Europe, discrepancies caused by non-compliant participants are making operations increasingly complex.”
