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Cryptocurrency regulatory developments in South Korea and SL

Updated 1 time since CLSTR started tracking revisions of this situation.

What changed

2026-10-13 04:03 UTC → 2026-10-14 20:40 UTC · added removed

South Korean financial authorities have moved finalized orders to restrict block domestic internet access to 27 cryptocurrency exchange websites operated by unregistered virtual asset service providers. Following reviews This crackdown, orchestrated by the Financial Intelligence Unit (FIU) and the Korea Media and Communications Standards Commission, the Financial Intelligence Unit (FIU) announced measures to block or terminate access to platforms targets global exchanges including KuCoin, MEXC, Phemex, Bitrue, CoinW, BTCC, BitMart, BingX, and DigiFinex. These actions The measures expand upon previous restrictions that targeted the installation and updating of removed these platforms’ mobile applications for these services. Authorities stated from major app stores. Regulators are specifically targeting entities that for sites with domestic servers serve South Korean residents through Korean-language interfaces, marketing, or operators, services will be terminated, while overseas-based sites will face domestic access blocking. The FIU noted won-settled payments without securing mandatory local registration and Information Security Management System (ISMS) certification. A joint investigation by the Digital Asset Exchange Alliance (DAXA) highlighted significant fee discrepancies, noting that some unregistered platforms lack essential protections against hacking, fraud, and money laundering, and often charge higher charged transaction fees than as high as 10%, compared to a 0.16% average at the 28 officially registered domestic exchanges. Under the Act on Reporting and Using Specified Financial Transaction Information, digital asset businesses must register with the The FIU has warned users to withdraw assets from these platforms and meet security requirements such as ISMS certification. cautioned against sharing private keys or identification documents, stating that authorities will monitor for alternative domains used to bypass blocks. Unregistered entities face remain subject to criminal penalties, including fines of up to 50 million won or prison sentences of up to five years. Separately, Sri Lanka is developing continues to develop a formal framework for virtual assets assets. This initiative aims to implement licensing requirements requirements, customer due diligence, and suspicious transaction reporting in preparation to prepare for evaluations by international watchdogs like the Financial Action Task Force (FATF).

Versions

  1. 2026-10-14 20:40 UTC Cryptocurrency regulatory developments in South Korea and SL
  2. 2026-10-13 04:03 UTC Cryptocurrency regulatory developments in South Korea and SL

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