South Korea Moves to Block Two Unregistered Crypto Platforms

South Korea’s Financial Intelligence Unit (FIU) has requested domestic access restrictions on two unregistered cryptocurrency businesses and referred three operators for investigation over suspected violations of local financial regulations, according to an Oct. 30 report from Yonhap News Agency cited by CryptoNews.

The regulatory body, operating under the Financial Services Commission, asked the country's communications review authority to block online access to TetherMax and SuperTrust. The move followed a referral by the Digital Asset Exchange Alliance (DAXA), which flagged TetherMax, SuperTrust, and Aegis Ventures as suspected unregistered virtual asset service providers. Aegis Ventures was excluded from the web-blocking request because it does not operate a separate website or application, though it remains under referral for investigation.

Enforcement Under Financial Laws

Under South Korea’s Specific Financial Information Act, domestic and overseas businesses offering cryptocurrency services to South Korean residents must complete registration with the FIU before operating. Non-compliant operators face penalties of up to five years in prison or fines reaching 50 million won.

With these latest referrals, the number of unregistered crypto businesses reported to investigative agencies has increased to 47. Earlier in October, the FIU directed access restrictions on 27 cryptocurrency websites, including platforms operated by KuCoin, MEXC, and BingX, after reporting 44 operators to authorities.

High Trading Fees and Money Laundering Concerns

The FIU warned that unregistered crypto operators present elevated risks of money laundering, fraud, and data exposure because they bypass statutory oversight. A joint inspection conducted in June by DAXA and registered domestic virtual asset service providers revealed that unregistered platforms charged trading fees ranging from 1.5% to 10%.

In contrast, South Korea’s five largest registered won exchanges levied an average fee of roughly 0.16%. The highest unregistered platform rates were approximately 62 times higher than the fees charged by domestic licensed exchanges.

Key facts

• The FIU asked communications authorities to block domestic access to TetherMax and SuperTrust.
• TetherMax, SuperTrust, and Aegis Ventures were referred to law enforcement, bringing total reported illegal operators to 47.
• Unregistered crypto operators face up to five years in prison or fines of up to 50 million won under South Korean law.
• A June inspection revealed unregistered operators charged fees between 1.5% and 10%, up to 62 times the average fee on top licensed won exchanges.