From BigGo Finance · BigGo Finance · · 1m 20s
South Korea Blocks 27 Unregistered Crypto Exchanges
South Korea blocks 27 unregistered crypto exchanges after app store restrictions.
In brief
South Korea blocks 27 unregistered crypto exchanges after app store restrictions. South Korea ordered domestic internet access blocks on 27 unregistered overseas cryptocurrency exchange websites to prevent financial risks. Originally reported by BigGo Finance.
South Korea Orders Domestic Block
South Korea's Financial Intelligence Unit ordered domestic internet access restrictions on 27 unregistered overseas cryptocurrency exchange websites on October 13.
Korea Communications Standards Commission Approval
The Korea Communications Standards Commission approved the blocks after reviews on October 6 and 7.
Extension to Web Access
The action extends earlier app store restrictions to web access, with overseas-hosted sites facing domestic blocks and domestic servers facing service termination.
Penalties for Unregistered Operations
Unregistered operations carry penalties of up to five years in prison or a 50 million won fine.
44 Operators Referred
The FIU has referred 44 operators to investigators and plans to monitor replacement domains.
Fee Comparison
A June investigation found affected exchanges charged fees of 1.5% to 10%, compared with 0.16% at major domestic platforms.
Withdrawal Guidance
Regulators will coordinate withdrawal guidance through the Digital Asset eXchange Alliance.
What Comes Next
Authorities expect some blocked platforms to attempt workarounds, with regulators monitoring for replacement domains and alternative websites.
The takeaway
South Korea ordered domestic internet access blocks on 27 unregistered overseas cryptocurrency exchange websites to prevent financial risks.
