South Korea Blocks 27 Unregistered Crypto Exchange Websites

Unregistered exchanges face faster access blocks

South Korea’s Act on Reporting and Use of Financial Information bars unregistered virtual asset service providers from operating in the country. Exchanges seeking to serve South Korean users must obtain Information Security Management System certification and register with the FIU, while also meeting security and anti-money-laundering requirements.

The enforcement framework allows the FIU to seek access restrictions as soon as it detects unregistered activity targeting Korean residents. Regulators do not need to wait for a court ruling or confirmed consumer losses. Authorities had already restricted access to affected exchanges’ mobile apps on Google and Apple last year.

The FIU has referred 44 unregistered operators to investigators and said it will pursue additional blocks when platforms reappear under alternative website addresses. Financial authorities also said they will track mirror domains and other access routes. Only 28 virtual asset service providers are currently registered with the regulator.

Regulators warned that users of unauthorized platforms may face difficulty recovering funds. The FIU plans to work with DAXA to support withdrawal procedures when the new restrictions create access problems. Investors were also urged to verify whether an exchange is registered and to withdraw assets from unauthorized operators.

KuCoin responded to the action. “We respect applicable laws and regulations across jurisdictions and continuously strengthen our compliance framework in response to evolving regulatory requirements,” a KuCoin spokesperson said. “User assets remain safe and secure, and we will communicate any further updates through our official channels.”