South Korea’s Financial Intelligence Unit announced on October 13 that the Korea Communications Standards Commission had approved restrictions on domestic access to 27 websites operated by unregistered virtual asset service providers. The decision followed review sessions held on October 6 and 7 and extends prior limits on mobile applications available through major app stores.

Scope of the Restrictions

The measures apply to platforms that have not registered under the Act on Reporting and Using Specified Financial Transaction Information, the country’s primary anti-money laundering framework for virtual assets. Authorities will terminate services for sites hosted domestically and block access to those operated from overseas servers.

Platforms named in the action include KuCoin, MEXC, Phemex, XT.com, Bitrue, CoinW, ZoomEX, Poloniex, BTCC, DigiFinex, Pionex, Blofin, Apex Pro, WEEX, BitMart, KCEX, BingX, P2B, Nonkyc.io, SUPEREX, CoinSolution, Sinbad Solution, Xgram, TapBit, CoinMy, BigOne and UBit. The Financial Intelligence Unit stated that the restrictions cover sites that remain operational despite earlier requests to limit access to unregistered providers.

Earlier steps had already restricted downloads and updates for unregistered exchange applications. Google Play limited 17 such apps beginning in March 2025, while Apple imposed similar controls in April 2025. The website blocks represent the first formal expansion of those curbs to the open web.

Registration Requirements and Targeting Criteria

Virtual asset service providers seeking to serve customers in South Korea must register with the Financial Intelligence Unit and obtain Information Security Management System certification. The same obligations apply to overseas operators that target Korean residents.

Regulators determine whether a foreign platform is actively serving the domestic market by examining factors such as the availability of Korean-language interfaces, marketing directed at local users, and support for transactions denominated in the South Korean won. Operating without the required registration is a criminal offense carrying a maximum penalty of five years in prison or a fine of approximately $37,250.

The Financial Intelligence Unit has referred 44 unregistered operators to investigative authorities. Registered exchanges face instructions to restrict virtual asset transfers involving the identified platforms, with potential administrative sanctions and fines of up to approximately $74,500 per violation for non-compliance. Credit card purchases involving unregistered providers have been restricted since May 2024.

Investor Protection Concerns

Authorities cited heightened risks for users of unregistered platforms, including exposure of personal information, hacking, money laundering and the possibility that customers pay for assets they never receive. Recovering losses can prove difficult when operators fall outside domestic supervisory frameworks.

A joint investigation conducted in June 2026 by the Digital Asset eXchange Alliance and registered operators found trading fees ranging from 1.5 percent to 10 percent at the examined businesses. Those levels reached as high as 62 times the 0.16 percent average fee charged by South Korea’s five major won-based exchanges.

Currently 28 virtual asset service providers are registered with the Financial Intelligence Unit. Officials advised customers to verify registration status before depositing funds and to withdraw assets from any identified unregistered operators.

Next Steps and User Support

The Financial Intelligence Unit plans to monitor alternative domains that affected operators may use to continue serving Korean customers. Newly identified sites will be subject to further reviews and access restrictions.

Recognizing that website blocks could complicate withdrawals for existing users, the unit said it would coordinate with the Digital Asset eXchange Alliance and relevant businesses to provide procedural guidance and assistance. No universal withdrawal deadline was established, and cooperation from every affected operator was not confirmed.

Officials also cautioned users against promotions offering high returns, principal guarantees, non-public information or special global listings, describing such claims as potential indicators of fraudulent activity. Reports of suspected illegal virtual asset businesses can be submitted through the Financial Intelligence Unit, the Digital Asset eXchange Alliance or police.