South Korea has imposed restriction measures on 17 foreign crypto service providers, including major platforms like KuCoin and MEXC. The Financial Supervisory Service (FSS) aims to protect users from risks associated with unregulated crypto operations.
South Korea FSS's Decision
On March 25, 2025, the FSS enforced a ban on 17 foreign crypto asset service providers, effectively limiting their access to South Korean users. The restriction specifically prevents these companies from offering their apps and services in the country, as well as providing updates.
Legal Framework Behind the Restrictions
The legal foundation for these restrictions comes from the 'Report and Use of Financial Transaction Information' law. This law mandates crypto service providers to report any suspicious activity or transactions to the Financial Information Unit (FIU). Providers who fail to register with the FIU or comply with South Korea’s regulations can be subject to such restrictions.
Impact and Further Measures
Among the affected providers, KuCoin and MEXC, two of the most prominent foreign exchanges, will no longer be accessible to South Korean users. This measure is expected to reduce the potential for scams or financial risks linked to unregulated crypto services. The FSS continues to work alongside other authorities like the Korea Communications Commission (KCC) to monitor these foreign platforms.
South Korea's restrictive measures on foreign crypto services aim to enhance the protection of users and the country's financial market. The FSS continues to monitor the situation to minimize potential risks.
