South Korea Moves to Block 27 Crypto Websites, Including KuCoin and MEXC
South Korea has expanded its crackdown on unregistered cryptocurrency exchanges, blocking domestic access to 27 websites operated by overseas digital asset platforms, including KuCoin, MEXC, Phemex, and Bitrue. The move extends regulatory restrictions beyond mobile applications to websites, tightening access to offshore crypto trading services for South Korean users.
The Financial Intelligence Unit (FIU), operating under South Korea’s Financial Services Commission, announced the decision on October 13, 2026. Authorities approved the restrictions following reviews conducted by the country’s broadcasting and communications regulatory body on October 6 and 7.
The action targets virtual asset service providers that have not registered under South Korea’s Act on Reporting and Using Specified Financial Transaction Information, which establishes requirements for cryptocurrency businesses operating in the domestic market.
Expanding Restrictions on Unregistered Exchanges
The latest decision marks a significant expansion of South Korea’s existing cryptocurrency enforcement measures. Previously, authorities focused on restricting access to unregistered exchanges through mobile application marketplaces, including Apple’s App Store and Google Play.
The new measures extend those restrictions to internet websites. Authorities can terminate domestically hosted services or block access to websites operated overseas.
Besides KuCoin and MEXC, the affected platforms include XT.com, CoinW, Poloniex, BTCC, BitMart, BingX, and DigiFinex.
South Korean regulations require cryptocurrency service providers targeting domestic customers to meet applicable requirements, including Information Security Management System certification, and file the necessary registration with the FIU.
Foreign exchanges can also fall under these requirements if they actively target Korean customers. Authorities consider factors such as Korean-language websites, marketing campaigns aimed at local users, and support for transactions involving the South Korean won.
The government says early intervention can help prevent financial harm before authorities identify specific victims or complete criminal investigations.
Withdrawal Concerns for Existing Customers
The restrictions could create difficulties for South Korean customers who hold cryptocurrency on affected platforms. Users may encounter problems accessing their accounts or withdrawing digital assets through the blocked websites.
The FIU acknowledged these potential disruptions and said it would work with the Digital Asset eXchange Alliance (DAXA) to provide guidance on withdrawal methods and procedures.
The latest action also reinforces South Korea’s broader efforts to limit financial crime and improve consumer protection in the cryptocurrency market. Authorities have warned that unregistered exchanges may lack the regulatory oversight and safeguards available through properly registered operators.
For affected investors, the immediate priority is understanding how the restrictions affect account access and asset withdrawals. The measures target access to unregistered platforms within South Korea rather than establishing a blanket prohibition on cryptocurrency trading.
