User assets remain safe and secure, and further updates will be communicated through official channels.
BitMart, Phemex, and MEXC did not immediately respond to a CoinDesk request for comment.
South Korea’s proposed Digital Asset Basic Law, still pending implementation, aims to establish a comprehensive legal framework for digital assets covering issuance, trading, custody, and supervision. In April, the Financial Services Commission and Financial Supervisory Service introduced new regulations that eliminate the discretion exchanges previously had to allow users to bypass holding periods.
The Financial Intelligence Unit has referred 44 unregistered operators to investigators and plans further blocks against websites that reopen under new addresses. Currently, only 28 virtual asset service providers are registered with the regulator.
The financial watchdog warned that traders using unauthorized platforms may face difficulties recovering their funds. The FIU stated it will collaborate with the Digital Asset eXchange Alliance (DAXA), an industry association, to assist affected customers in withdrawing funds when access restrictions arise. Investors are also urged to verify whether their exchange is registered and to move assets from unauthorized operators.
South Korean investors have been gradually relocating significant crypto holdings overseas amid stricter regulations, with an estimated $110 billion leaving domestic exchanges in 2025.