Website restrictions extend measures already imposed through Google and Apple’s app stores. The FIU says unregistered operations can face blocking before customer losses or a court ruling are established.
South Korea’s Financial Intelligence Unit (FIU) announced on October 13 that access-blocking decisions had been approved for 27 websites operated by unregistered crypto service providers. The media and communications standards commission reviewed the FIU’s requests in two sessions on October 6 and 7.
The official list attached to the announcement names crypto exchanges including KuCoin, MEXC, Phemex, XT.com, Bitrue, CoinW, ZoomEX and Poloniex. BTCC, DigiFinex, Pionex, Blofin, Apex Pro, WEEX, BitMart, KCEX and BingX are also named. The FIU says the decision covers 27 sites still operating among those it had previously referred for blocking.
Website blocks extend earlier app restrictions
Google and Apple had already restricted new installations and updates of unregistered operators’ apps in South Korea at the FIU’s request. The website measures also target access through a browser. The notice distinguishes termination of service where the server or operator is domestic from access blocking where it is overseas.
The measures concern access from South Korea. The announcement does not mean the listed exchanges are closing worldwide or that customers’ assets have been seized. It does not give a separate technical activation time for each website.
The FIU says evidence of unregistered operations is enough to seek a review. Authorities intend to restrict access without waiting for documented customer losses or a judicial decision. Replacement domains used to continue operating will also be monitored and referred for further review.
When do overseas platforms need Korean registration?
Overseas providers targeting South Korean customers fall under the country’s law on reporting and using specified financial transaction information. The FIU considers Korean-language websites, campaigns aimed at Korean customers and support for payments in won. Incorporating abroad does not by itself remove the obligation to register for operations directed at the Korean market.
Registration requires conditions including Information Security Management System (ISMS) certification. According to the FIU, unregistered operations can carry up to five years in prison or a fine of up to 50 million won. The agency warns that services outside its supervisory framework may lack adequate anti-money laundering systems and safeguards for customer assets.
The announcement puts the number of registered providers at 28. Separately, authorities have referred 44 unregistered operators to investigators to date. The 27-site blocking decision covers a different group from the cumulative list of 44 referrals.
DAXA will help users navigate withdrawals
The FIU acknowledges that access blocks could make withdrawals harder for existing customers. The Digital Asset eXchange Alliance, or DAXA, is expected to explain withdrawal methods and procedures with the operators’ cooperation. The notice does not provide platform-specific timetables, a common final withdrawal date or a guarantee of reimbursement.
The agency asks users to check providers’ registration status and withdraw assets held with unregistered operators. It also warns against sharing private keys, login credentials or copies of identity documents. Supervision requiring registered domestic firms to restrict transfers to unregistered operators continues; rules preventing credit-card purchases of crypto from those services were introduced in May 2024.
FSC’s October 13 announcement on website access blocks
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