KuCoin Eyes Return to South Korea Following Regulatory Block

KuCoin, a major cryptocurrency exchange, has revealed plans to potentially return to South Korea after being blocked by regulators. The platform was among several exchanges affected when South Korean authorities ordered Google Play and Apple Store to restrict access to unregistered crypto platforms in March and April 2023, respectively.

During an exclusive interview with Cointelegraph at the Token2049 event in Dubai, KuCoin’s newly appointed CEO BC Wong confirmed that the exchange hasn’t completely abandoned the South Korean market despite current restrictions. The company has already initiated conversations with regulators about a potential comeback.

Wong explained that KuCoin is taking a strategic approach to regulatory compliance. “The resource is there. We need to go one by one. Our strategy will always be that major jurisdictions come first, which means the United States, EU, China, India, and maybe after that, Australia,” he told Cointelegraph. The exchange aims to secure compliance in these key markets before returning to South Korea.

Regulatory Environment Becomes More Challenging

Wong also noted that regulators have become significantly stricter compared to three years ago. He questioned whether regulatory actions are truly aimed at proper market oversight or if they serve to protect domestic exchanges. “I’m not so sure that if the regulators’ intention is to regulate the global market or just simply, they want to pave the way to get all the global kind of players to be out from their market, and pave the road for their domestic exchange,” Wong stated.

The South Korean regulatory crackdown began on March 21 when the country’s Financial Services Commission (FSC) directed Google Play to block access to non-compliant exchanges. This was followed by similar orders to Apple Store on April 11, effectively cutting off KuCoin from South Korean users.

European Regulatory Challenges Despite MiCA Framework

Oliver Stauber, who recently joined KuCoin as its European Union CEO, shared insights about regulatory challenges in Europe. Despite the implementation of the Markets in Crypto-Assets Regulation (MiCA), which theoretically creates a unified framework across the EU, operating across all European jurisdictions remains complicated.

Stauber, formerly the chief legal officer at BitPanda, explained that although MiCA licenses include passporting features that should enable services across the EU, some jurisdictions interpret the regulations differently. This inconsistency can lead to claims that licenses were “wrongly assessed,” creating obstacles for exchanges seeking to operate throughout Europe.

“MiCA was said to have a level playing field in crypto all over Europe. However, as long as there are players who are not playing by the books, you know it’s getting quite messy and difficult,” Stauber told Cointelegraph.

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