South Korea Blocks 27 Unregistered Crypto Sites

South Korea has approved domestic access blocks or service terminations for 27 websites tied to unregistered crypto platforms, extending restrictions beyond mobile apps and potentially complicating users’ access to funds. The Financial Intelligence Unit (FIU) said the Financial Services Commission’s announcement followed two reviews by the country’s broadcast and communications review body on Oct. 6 and 7.

Which platforms and websites are affected?

The measure covers 27 currently operating websites identified by the FIU as belonging to crypto businesses that have not registered under South Korea’s Special Financial Transactions Act. The government announcement counts websites, rather than 27 distinct exchanges. CoinDesk reported that the affected platforms include KuCoin, BitMart and MEXC.

The action is aimed at domestic access. According to the FIU, a site with servers or operators in South Korea can face termination of service; one operated from overseas can face an access block. The decision does not mean the exchanges’ global services are shut down.

How does South Korea’s blocking process work?

The process has several steps. First, the FIU identifies an unregistered provider and requests action against its online services. Then the broadcast and communications review body examines the request and decides whether to restrict the website. Internet providers or relevant service operators carry out the resulting domestic block or termination.

The order adds websites to earlier restrictions on mobile apps. At the FIU’s request, app stores already block new installations and updates for apps from unregistered providers. The agency says it plans to seek website reviews as soon as it detects unregistered activity, without waiting for a report of customer losses or a judicial ruling.

South Korean law requires crypto businesses serving local customers to register with the FIU and meet requirements including information security certification. The FIU says this applies to overseas firms that target South Koreans, with factors such as Korean-language sites, marketing to Korean customers and support for won payments considered when assessing local business activity.

What does the order mean for customers?

A website block can make it harder for customers in South Korea to reach an exchange, including to withdraw assets. The FIU says it will work with the Digital Asset eXchange Alliance, an industry group, to explain withdrawal methods and procedures where access restrictions cause problems. It warns that users of unregistered providers may have fewer safeguards and that recovering money after a loss can be difficult.

The agency says 28 crypto businesses are registered in South Korea and that it has referred 44 unregistered operators to investigative authorities. It also plans to monitor replacement website addresses and request further reviews where operators try to keep serving customers through new sites. The immediate change is that domestic website access joins app access among the restricted routes; the next step is whether the affected operators’ sites are replaced and how customers can withdraw funds.

References

• Financial Services Commission’s announcement — fsc.go.kr