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      South Korea Blocks Access to 27 Unregistered Overseas Crypto Exchanges

      South Korea's Financial Intelligence Unit (FIU) has ordered the blocking of websites belonging to 27 unregistered overseas cryptocurrency exchanges, effective October 13, 2026. This action is part of an ongoing crackdown on virtual asset service providers (VASPs) that operate without registration in South Korea, which includes platforms that facilitate the buying, selling, or transferring of cryptocurrencies.

      The decision follows discussions by the Korea Communications Standards Commission (KCSC) on October 6 and 7, which oversees online content regulation in the country. The FIU has emphasized that this measure is aimed at protecting users from the rising risks associated with unregistered platforms, such as asset theft, fraud, and data breaches. Furthermore, the FIU highlighted that these unregistered exchanges do not offer investor protections and typically charge significantly higher fees compared to licensed exchanges.

      In recent years, South Korea has implemented a layered approach to regulating cryptocurrency transactions. In May 2024, credit card transactions at unregistered firms were restricted, followed by a mandate from Google Play requiring VASP registration for app distribution starting January 28, 2026. As of now, only 27 to 28 domestic platforms have successfully registered with the FIU, indicating a stark contrast between the number of compliant local exchanges and the blocked overseas sites. This regulatory environment suggests that unregistered platforms will struggle to access South Korean customers without proper registration.

      © 2026 KLEA News. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

      Source: KLEA News

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