The South Korea Financial Services Commission’s Korea Financial Intelligence Unit announced that the Broadcasting and Media Communications Review Committee has approved domestic restrictions on 27 websites operated by unregistered virtual asset service providers. Domestic services will be terminated and access to overseas sites blocked, extending restrictions already applied to the operators’ mobile apps. Websites may be restricted as soon as illegal activity is detected, without waiting for confirmed customer harm, a court judgment or a separate complaint. Virtual asset service providers must register with the Korea Financial Intelligence Unit and meet requirements including information security management system certification. The rules also cover overseas operators that target South Korean customers. Unregistered activity is punishable by up to five years’ imprisonment or a fine of up to KRW 50 million, while registered providers may face penalties if they transact with unregistered firms. The unit has referred 44 illegal operators to investigative authorities and said only 28 virtual asset service providers are currently registered. The Korea Financial Intelligence Unit will seek expedited review of newly identified operators and replacement websites used to evade blocks. The Digital Asset Exchange Alliance will provide withdrawal guidance to existing customers affected by the restrictions.
South Korea Financial Services Commission announces domestic blocking of 27 unregistered virtual asset websites
The South Korea Financial Services Commission’s Korea Financial Intelligence Unit announced domestic restrictions on 27 websites operated by unregistered virtual asset service providers, extending existing mobile app controls. Illegal sites may be blocked upon detection without waiting for confirmed customer harm or a court judgment. The unit will also pursue replacement sites and support withdrawals for affected customers.