South Korea will block domestic access to the websites of 27 crypto operators that are not registered in the country, its Financial Intelligence Unit (FIU) said on Tuesday, extending a block that already covers their mobile apps.
The Korea Media and Communications Standards Commission approved the measures in two reviews on 6 and 7 Oct at the FIU’s request, according to the FIU’s statement (in Korean; quotes are our translation). Sites run from inside Korea will have their service terminated; sites hosted abroad will be blocked.
The list includes KuCoin, MEXC, Phemex, XT.com, Bitrue, CoinW, Poloniex, BTCC, DigiFinex, Pionex, BloFin, WEEX, BitMart and BingX, according to Herald Business and Cointelegraph, which cite the FIU’s annex. We have not seen responses from the named firms.
Why these sites
Under the Act on Reporting and Using Specified Financial Transaction Information, any firm doing crypto business in Korea must register with the FIU, which requires an ISMS information-security certification. That applies to foreign firms too if they target Korean users. The FIU says it judges this by whether a firm offers a Korean-language site, markets to Korean customers or supports payment in won.
Operating unregistered is a criminal offence, punishable by up to five years in prison or a fine of up to ₩50 million (about $37,300), the FIU said. Only 28 operators are registered; “all other firms” doing crypto business in Korea “are illegal,” it said.
The FIU said it will no longer wait for user complaints or a court finding: sites will be put up for review as soon as unregistered activity is found, and mirror sites will be chased as well. It has referred 44 firms to investigators so far.
Google and Apple already block new installs and updates of these operators’ apps in Korea at the FIU’s request.
What it changes for users
Korean users of the listed platforms may find it harder to withdraw. The FIU acknowledged this and said the industry body DAXA will publish withdrawal steps with the operators’ cooperation. It told users to “withdraw their crypto and deposits immediately” from unregistered operators and not to hand over keys, logins or ID copies.
It also warned that sharing referral links for unregistered platforms “could be assessed as aiding unregistered business”, which could expose the referrer to prosecution.
The move lands while Seoul finalises a broader crypto law; see our report on the Digital Asset Basic Act talks and this week’s Asia Ten.
What to watch: the DAXA withdrawal guidance, and whether the FIU publishes the full list on its own site.
Related: Australia’s ASIC drafts its crypto platform rules
This article is for information only and is not investment advice.