October 13th 2026, 10:12 PM
South Korea Cracks Down on Unregistered Crypto Exchanges
Key Summary
South Korea has blocked access to 27 unregistered crypto exchanges, including KuCoin and MEXC, amid concerns over anti-money laundering regulations, while also taking steps to balance crypto growth with stricter enforcement
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South Korea Expands Crypto Crackdown
Financial authorities have ordered blocks on 27 overseas cryptocurrency exchange websites operating without registration in the country.New Restrictions
The Financial Intelligence Unit announced the move on October 13. Authorities had already restricted downloads and updates of their apps on Google Play and Apple's App Store. Now, they are extending those restrictions to the exchanges' websites.Enforcement Approach
Crypto exchanges that want to serve users in South Korea must meet local requirements, which include obtaining Information Security Management System (ISMS) certification and filing a report with the FIU. Overseas platforms are also covered if they target Korean customers.Consequences
Companies that operate without the required registration can face up to five years in prison or fines of up to 50 million won (over $37,000).Balancing Growth and Enforcement
The country has also taken a tougher stance on crypto-related misconduct.Crypto Growth Amidst Crackdown
South Korea is moving ahead with plans to bring traditional financial assets onto the blockchain as it recently unveiled a phased roadmap to tokenize stocks, bonds, and investment funds.#SouthKorea#CryptoRegulation#KuCoin#MXC