South Korea's Financial Intelligence Unit (FIU), under the Financial Services Commission, said on October 13 that domestic access would be blocked or service terminated for 27 websites operated by unregistered virtual asset service providers, including KuCoin, MEXC and Phemex. The decision followed two rounds of review by the Korea Communications Standards Commission on October 6 and 7 at the FIU's request.
Google's and Apple's app marketplaces had already restricted new domestic installations and updates of apps from unregistered operators. The latest decision extends the restrictions to websites. The FIU said operating without registration is itself illegal under South Korea's Act on Reporting and Using Specified Financial Transaction Information, and that it had strengthened a response system that blocks access after review without waiting for investigative results or confirmation of specific user harm.
Overseas operators are subject to the same registration requirement if they conduct business targeting users in South Korea. Whether an operator is conducting domestic business is assessed based on factors including whether it provides a Korean-language website, markets to Korean users and supports payments in Korean won. The FIU plans to continue monitoring alternative sites that resume operations under changed addresses after blocking and to request additional reviews.
If blocking makes it difficult for existing users to withdraw assets, guidance and assistance on withdrawal methods and procedures will be provided through the Digital Asset eXchange Alliance (DAXA) with the operators' cooperation. However, the press release did not specify when each site would actually be blocked or provide detailed withdrawal-support procedures.