South Korea Blocks 27 Crypto Exchanges Amid Regulatory Changes
- The Financial Intelligence Unit (FIU) has referred 44 unregistered operators for investigation.
- Only 28 virtual asset service providers are currently registered with South Korea’s regulator.
- New rules announced in April removed the discretion of exchanges to allow users to bypass holding periods.
- An estimated $110 billion in crypto has left domestic exchanges as investors seek more favorable conditions abroad.
The proposed Digital Asset Basic Law aims to establish a legal framework for digital assets, covering aspects like issuance and trading. The FIU is collaborating with the Digital Asset eXchange Alliance (DAXA) to assist users affected by access restrictions on unauthorized platforms.
With significant regulatory actions, South Korean investors have moved large amounts of crypto overseas, totaling approximately $110 billion leaving domestic exchanges recently. (Source)
