Exchange Security Assurances

BitMart, Phemex, and MEXC have confirmed that “User assets remain safe and secure, and we will communicate any further updates through our official channels.” This statement aims to reassure users amidst an evolving regulatory environment.

New Regulatory Framework for Digital Assets

South Korea is in the process of implementing its proposed Digital Asset Basic Law, which aims to create a comprehensive legal framework governing aspects such as the issuance, trading, custody, and supervision of digital assets. This initiative is expected to provide much-needed clarity for both users and service providers in the digital asset space.

In April, the South Korean Financial Services Commission and Financial Supervisory Service announced new regulations that eliminated prior allowances for exchanges, making it mandatory for users to adhere to official holding periods.

Regulatory Actions and Compliance

Recently, the Financial Intelligence Unit (FIU) reported that it has referred 44 unregistered operators to authorities for further investigation. As part of its efforts, the FIU is also seeking to block websites attempting to operate under new addresses to evade regulations.

Currently, only 28 virtual asset service providers are registered with the FIU, underscoring the stringent compliance requirements in place. Traders are advised that utilizing unauthorized platforms could hinder their ability to recover funds effectively.

Moving Assets Off Domestic Exchanges

As regulatory pressures increase, South Korean investors have been transferring significant amounts of cryptocurrency to foreign platforms. In 2025, it is estimated that approximately $110 billion has exited domestic exchanges, indicating a growing trend of relocating assets to more favorable environments.

Investor Guidance

The FIU has urged investors to ensure that their exchange is registered to avoid potential complications. It is working alongside the Digital Asset eXchange Alliance (DAXA) to facilitate the withdrawal of funds for customers affected by access restrictions on unauthorized platforms.

For the safety of their investments, traders are encouraged to verify the compliance status of their exchanges and consider withdrawing assets from any unverified operators.