South Korea continues to tighten its grip on the cryptocurrency market by blocking 14 unregistered exchanges, including KuCoin and MEXC.
Previous Actions and Ongoing Efforts
The block took place on April 11, 2025, as part of a broader strategy to enhance compliance with financial regulations. This decision follows previous action against 17 platforms.
Immediate Effects of the Block
The block affects apps such as KuCoin, MEXC, Phemex, among others, deemed unregistered and targeting South Korean users. This is expected to drive investors toward compliant exchanges, potentially reducing liquidity on blocked platforms. Penalties for non-compliance remain significant.
Future of Crypto Regulation in South Korea
South Korea's regulatory actions reflect efforts to curb money laundering risks. Moving forward, monitoring of access to overseas exchanges via mobile apps and websites may continue to prevent risks to users. 'In the future, we will continue to block domestic access through mobile applications (apps) and Internet sites of overseas unreported virtual asset operators in order to prevent money laundering risks and user damage,' stated the Financial Services Commission (FSC).
South Korea's regulatory decisions suggest potential shifts in the country's financial landscape, emphasizing compliance and user protection.
