South Korea is blocking the websites of 27 unregistered crypto exchanges, including KuCoin, BitMart and MEXC. The move extends last year's restrictions on their mobile apps. Regulators urged investors to check registration and withdraw assets from unauthorized platforms.
South Korea is blocking access to 27 unregistered crypto exchanges' websites, including KuCoin, BitMart and MEXC. The step extends its crackdown on foreign trading platforms beyond mobile apps.
The country's Financial Intelligence Unit (FIU) announced Tuesday that the Korea Communications Standards Commission approved the restrictions after reviews on Oct. 6 and 7. Websites operated from overseas will be blocked, while those operating domestically face service termination, the FIU noted.
Regulators can act without a court ruling
The website blocks follow restrictions on mobile apps on Google and Apple last year. Regulators can now seek website blocks as soon as they detect unregistered activity, without waiting for a court ruling or evidence that customers have lost money.
However, the FIU did not specify how long the restrictions will last or set a deadline for the exchanges to register. Any exchange that wants to serve South Korean customers must register with the FIU and meet security and anti-money laundering requirements.
Operators referred to investigators
The FIU said it has referred 44 unregistered operators to investigators and will seek further blocks against websites that reopen under different addresses. Only 28 virtual asset service providers are currently registered with the regulator.
A KuCoin spokesperson said: "User assets remain safe and secure" BitMart, Phemex and MEXC did not immediately respond to a CoinDesk request for comment.
The watchdog also warned that traders using unauthorized platforms could face difficulties recovering their funds. It will work with the Digital Asset eXchange Alliance (DAXA), an industry association, to help affected customers withdraw funds where access restrictions create problems.
Source: CoinDesk
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