Coinbase, Chinese Exchanges Eye South Korean Shell Crypto Operators

Coinbase and Chinese exchanges are eyeing South Korea's shell crypto exchanges for Virtual Asset Service Provider (VASP) status.

These foreign players aim to secure VASP registration, which allows them to operate in the domestic market with reduced regulatory hurdles.

The largest U.S. cryptocurrency exchange, Coinbase, along with major Chinese-linked exchanges Bitget and Bybit, are actively exploring acquisition and investment opportunities with multiple coin market exchanges in South Korea.

Coin market exchanges allow users to buy and sell cryptocurrencies using Bitcoin or stablecoins but cannot process Korean won deposits and withdrawals, leaving them with virtually no active user base.