South Korea’s financial watchdog is preparing to clamp down on several overseas cryptocurrency exchanges accused of operating in the country without proper registration. The move could lead to access blocks for major platforms such as BitMEX, KuCoin, and others that have allegedly been offering services to Korean investors without complying with local regulations.

According to a report by a local media outlet, the Financial Intelligence Unit (FIU) under the Financial Services Commission (FSC) has identified multiple global exchanges as potential targets for enforcement actions under the Specific Financial Information Act. This law requires all virtual asset service providers (VASPs) to formally register with the FIU before conducting any business involving Korean users.

Sources within the financial authority say the FIU is actively investigating a list of exchanges suspected of illegally targeting Korean investors through Korean-language websites, localized marketing, and direct customer support. Platforms named in the report include CoinW, Bitunix, and KCEX, alongside BitMEX and KuCoin—exchanges already familiar to South Korean crypto traders.‍

Blocking Access on the Table

Authorities are reportedly weighing a full block on access to these platforms in cooperation with the Korea Communications Standards Commission (KCSC). 

A similar move was made back in 2022, when the FIU requested the KCSC to block 16 foreign exchanges and coordinated with credit card companies to restrict crypto-related transactions. The effort led several unregistered exchanges to withdraw from the Korean market and halt new user signups.

The FIU is now said to be collecting evidence of user damages and communications data as it coordinates with other government bodies on potential enforcement steps. An official told Hankyung that tangible measures could be taken later this year, signaling that the crackdown may be more than just a warning.‍

Legal Backdrop and Industry Impact

Under South Korean law, providing crypto trading, brokerage, custody, or management services without registering with the FIU is considered illegal business activity, subject to both criminal penalties and administrative sanctions. Registration requires platforms to meet standards related to anti-money laundering (AML), data security, and financial transparency.

While local exchanges like Upbit and Bithumb have been operating under these rules, global platforms have historically found the compliance burden too high, leading many to operate in a legal gray zone.

If the proposed site blocks and sanctions move forward, South Korean users could lose access to some of the most popular international trading platforms.