South Korea Blocks 27 Unregistered Crypto Exchange Websites

South Korean authorities are intensifying their regulatory efforts by blocking access to 27 websites belonging to unregistered crypto service providers. This action, announced by the Financial Intelligence Unit (FIU) on October 13, includes well-known platforms such as KuCoin, MEXC, Phemex, and BingX.

The decision follows the Korea Communications Standards Commission's approval on October 6 and 7, which allows for the termination of accounts used by operators on domestic servers and the blocking of overseas-hosted websites within South Korea. The FIU emphasized that it would no longer wait for confirmed consumer losses or the conclusion of investigations before enforcing these restrictions, as unregistered virtual asset operations are already illegal under South Korean law.

The new regulations also target foreign platforms that cater to South Korean customers through Korean-language websites, local marketing, or support for transactions in Korean won. To operate legally, providers must obtain ISMS certification and register with the FIU, with violations potentially leading to prison sentences of up to five years or fines of up to 50 million won.

As part of this crackdown, the FIU has referred 44 unregistered operators to investigative agencies and has restricted financial transfers between registered providers and these entities. Additionally, the agency has requested that Google and Apple block new installations and updates for unregistered exchange applications.

The FIU has advised users holding assets on these unregistered platforms to withdraw their funds promptly, warning that the blocks may complicate withdrawal processes. The Digital Asset eXchange Alliance (DAXA) will assist users in navigating withdrawal procedures.