South Korea's Financial Intelligence Unit (FIU) is cracking down on non-compliant crypto exchanges, targeting platforms like BitMEX, KuCoin, and CoinW for operating without proper registration. Exchanges failing to comply with Virtual Asset Service Provider (VASP) regulations may face bans, ISP blocks, or DNS filtering. Authorities recently suspended Upbit for three months due to verification failures. The government also plans to regulate cross-border crypto transactions by late 2025, requiring businesses to report to the Bank of Korea. These measures reflect South Korea’s commitment to tightening financial oversight, enhancing consumer protection, and ensuring compliance in the digital asset sector.