South Korea Bans Domestic Access to 27 Unregistered Crypto Exchanges

The Financial Intelligence Unit (FIU) initiated the crackdown to enforce the Specific Financial Information Act, which requires all platforms targeting local customers to maintain domestic registration and secure Information Security Management System certification. While the government previously targeted mobile applications on the Google Play and Apple App Stores, these new restrictions extend the enforcement to web-based domains. Officials stated that the move aims to mitigate consumer risks, including data breaches, money laundering, and potential loss of assets on platforms that lack local oversight.

Regulators have intensified their scrutiny of overseas operators that provide Korean-language interfaces, promotional activities, or support for won-based payments. Investigations suggest that these unregistered entities often charge exorbitant fees; a June 2026 analysis found trading costs reaching 10% on some platforms, significantly higher than the 0.16% average at domestic exchanges. Beyond the website blocks, authorities have referred 44 unregistered operators to investigative agencies for potential criminal prosecution, which carries penalties of up to five years in prison or fines reaching 50 million won. The FIU is now coordinating with the Digital Asset Exchange Association to provide withdrawal guidance for users currently holding funds on the affected sites.