KuCoin Eyes South Korea Comeback After Regulatory Setback

Despite being pushed out of the South Korean market earlier this year, crypto exchange KuCoin isn’t ready to give up on the region. The platform's newly appointed CEO, BC Wong, has made it clear that a return is not only possible but planned, though only after a broader global compliance effort takes shape, Cointelegraph reported.

Regulators Target Unregistered Crypto Platforms

In March and April, South Korean authorities tightened their grip on crypto trading by ordering Google and Apple to block unregistered exchanges. KuCoin was among the casualties, effectively shutting out its services from local users.

However, the company has not formally exited the South Korean market. Instead, it is waiting for the right time and legal standing to return.

Wong raised concerns that some regulators may use compliance frameworks not just to protect consumers, but to shield local exchanges from global competition. The latest development suggests that KuCoin sees more than just a legal barrier; it sees a competitive strategy playing out in the guise of regulation.

European Entry Also Comes With Friction

In Europe, KuCoin has also faced challenges, despite the promise of uniform rules under the Markets in Crypto-Assets Regulation (MiCA). Oliver Stauber, the exchange’s EU CEO, noted that while MiCA was designed to simplify cross-border operations, reality doesn’t always match theory.

Stauber added that some local authorities in the EU claim certain licenses are wrongly assessed, throwing up barriers that were supposed to have been eliminated by the regulation’s passporting mechanism.

In 2022, the South Korean authorities cracked down on overseas cryptocurrency exchanges, alleging that 16 such platforms operate in the country without authorization.

Among the affected firms were KuCoin and MEXC, which, according to the Korea Financial Intelligence Unit, have allegedly violated the peninsula’s Financial Information Act. The regulators mentioned that the firms offered cryptocurrency exchange services in the region but did not meet any requirements or obligations.

Cryptocurrency exchange KuCoin appointed BC Wong as its new Chief Executive Officer earlier this year and launched trading for the Official Trump (TRUMP) token on its spot trading platform. BC Wong, previously serving as Chief Legal Officer, steps into the CEO role, bringing extensive cryptocurrency industry experience and legal expertise.