South Korea Proposes Treating Illegal Offshore Crypto Exchanges Like Fraudulent Websites

Korea’s review committee urges FIU to block unregistered offshore exchanges linked to harm, mirroring scam site protocols to curb financial crimes and protect consumers.

Woofun AI reports that South Korea’s Broadcast, Media and Communications Review Committee has formally proposed that the Financial Intelligence Unit treat illegal offshore virtual asset exchanges with the same severity as fraudulent websites. Following a July 16 working-level meeting, the committee recommends prioritizing the blocking of overseas platforms where specific user harm has been confirmed, including those linked to money laundering, illegal remittances, tax evasion, and data leaks. This framework aims to address unregistered entities operating outside the legal framework while serving domestic users, reinforcing strict registration requirements for all virtual asset service providers.