• The Financial Intelligence Unit (FIU) has reported to investigative authorities a list of 23 domestic and international virtual asset service providers (VASPs) engaged in unregistered and illegal business activities.

• In accordance with Article 10-20 of the Enforcement Decree of the Specified Financial Information Act, transactions for business purposes with unregistered service providers are prohibited. As a result, deposits and withdrawals of virtual assets related to these illegal exchanges will be restricted as follows. Please take this into account when using our services.

• Article 10-20 of the Enforcement Decree of the Specified Financial Information Act (Measures by Virtual Asset Service Providers)

  • Article 10-20 (Measures by Virtual Asset Service Providers)

    • As referenced in Article 8 of the Act, the phrase “measures prescribed by Presidential Decree, such as managing transaction records separately for each customer” refers to the following:

      1. Manage transaction records separately for each customer.

      2. Separate and manage customer deposits from proprietary assets, as prescribed in Article 5-2(1) Subparagraph 3(m)(1) of the Act.

      3. Restrict transactions with customers who have not completed all verification measures specified in each subparagraph of Article 5-2(1) of the Act.

      4. Do not engage in business-purpose transactions with virtual asset service providers that have not fulfilled their registration or change notification obligations under Article 7(1) and (2) of the Act.

      5. To efficiently prevent money laundering and terrorist financing, establish and implement standards that restrict transactions involving the following:

         1. Intermediating, brokering, or acting on behalf of the sale or exchange of virtual assets issued by a VASP or its related parties (as defined in Article 34(4) of the Enforcement Decree of the Commercial Act)

         2. Transactions in which employees or executives of a VASP buy or exchange virtual assets through that VASP

         3. Transactions where a VASP intermediates, brokers, or acts on behalf of virtual asset trades but also acts as the counterparty to the trade in substance

      6. Any other measures equivalent to those listed in Subparagraphs 1 through 5, as prescribed and announced by the head of the Financial Intelligence Unit (FIU) to ensure transparency in virtual asset transactions.

Unregistered Virtual Asset Service Providers (VASPs) Transaction Restriction List (As of July 12, 2023 – 23 Companies)

*The newly listed exchanges on Bitunix and KCEX by Upbit are not included in the list of companies officially notified by the FIU, so they are not being handled for now.

• Customers using our services are strongly advised to verify whether the virtual asset service provider (VASP) they are using is a business legally registered under the ACT ON REPORTING AND USING SPECIFIED FINANCIAL TRANSACTION INFORMATION, and to ensure that it is not an exchange designated by the Financial Intelligence Unit (FIU) as prohibited from deposits, withdrawals, or other transactions before proceeding with any trades.

• Unregistered virtual asset service providers do not meet the reporting requirements under the Act on Reporting and Use of Certain Financial Transaction Information and its Enforcement Decree, which may expose users to risks such as personal information leaks and hacking. Additionally, if they are not subject to anti-money laundering oversight, there is a concern that they could be exploited as channels for money laundering.

• Please note that if deposit or withdrawal transactions are conducted through any of the 23 exchanges announced by the Financial Intelligence Unit (FIU), actions such as transaction restrictions may be taken in accordance with the terms of service.