South Korea has decided to block domestic access to 27 unregistered overseas cryptocurrency exchanges. Some big names like KuCoin, MEXC, BingX, and Phemex are included in the list. The authorities are expanding their crackdown on platforms operating without local registration.
Financial Intelligence Unit (FIU) has ordered these restrictions. The restrictions were additionally approved by the relevant broadcasting and communications review authority. The measures extend earlier restrictions on downloading and updating the targeted exchanges’ mobile apps through Google Play and Apple’s App Store.
KuCoin, MEXC and BingX Among Targeted Exchanges
The affected crypto platforms also include XT.com, Bitrue, CoinW, Poloniex, BTCC, and BitMart. Under the new measures, websites hosted on overseas servers will face domestic access blocks. On the other hand, services operating through domestic servers may be terminated. Authorities also plan to monitor alternative domains that exchanges could use to bypass the restrictions.
The FIU said operating a virtual asset service without the required registration violates South Korea’s Act on Reporting and Using Specified Financial Transaction Information. This act is also known as the Special Financial Information Act.
Overseas platforms serving South Korean users must obtain Information Security Management System (ISMS) certification and register with the FIU. Registered exchanges are asked to comply with requirements including a Korean-language website, marketing of services to local residents, and support for payments in Korean won.
South Korea Enforces Penalties for Unregistered Crypto Services
Operating without registration can carry penalties of up to five years in prison or a fine of up to 50 million won. The latest action highlights South Korea’s continued effort to bring crypto exchanges under its domestic regulatory framework.
The FIU has referred 44 unregistered virtual asset service providers to investigative authorities. South Korea currently has approximately 28 virtual asset service providers registered with the FIU. It has also restricted transfers from registered operators to unregistered platforms.
Users who hold funds or cryptocurrency on confirmed unregistered platforms have been advised to withdraw their assets promptly.