The South Korean Financial Intelligence Unit (FIU) has ordered the blocking of 27 unregistered overseas cryptocurrency exchanges. The decision follows discussions by the Korea Communications Standards Commission held on October 6 and 7, 2026.
Regulators cite user safety concerns, including risks of fraud, asset theft, and data leaks. The FIU notes that unregistered platforms lack investor protections and impose significantly higher trading fees, ranging from 1.5% to 10%, compared to approximately 0.16% on licensed local exchanges.
This action is part of a broader crackdown on offshore virtual asset service providers. Previous measures included restricting credit card transactions in May 2024 and limiting app store access on Google Play and Apple platforms starting in January 2026.
Registered domestic exchanges are now prohibited from facilitating transfers to unregistered foreign operators. As of October 2026, authorities have received referrals for 44 unregistered operators, while only 27 to 28 domestic platforms have successfully completed the FIU registration process.
