South Korea tightens cryptocurrency regulations to limit offshore transfers

South Korea is implementing stricter cryptocurrency regulations aimed at limiting the movement of funds between domestic and offshore markets. The measures include restricting access to several unregistered derivative platforms on the local Google Play Store, affecting entities such as Bybit, MEXC, and HTX. While existing app installations may still function, they will eventually lose automated update capabilities.

New transfer restrictions require exchanges to collect detailed user information, including names, the origin of funds, and the purpose of each transfer. Additionally, transfers exceeding 10 million won (approximately $7,000) to overseas accounts or self-hosted wallets will face enhanced monitoring. These actions are intended to slow offshore liquidity flows and may strengthen the position of registered domestic exchanges, though users may attempt to bypass restrictions via web interfaces or iOS platforms.