Hassan Maishera
TL;DR
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South Korea is restricting access to 27 unregistered crypto exchange websites, including KuCoin, BitMart, and MEXC.
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The action extends earlier restrictions on exchange apps distributed through Google and Apple.
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Exchanges serving South Korean customers must register with the Financial Intelligence Unit and meet security and AML requirements.
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The FIU has referred 44 unregistered operators to investigators and plans to target websites that reopen under new addresses.
South Korea is blocking access to websites operated by 27 unregistered cryptocurrency exchanges, expanding its crackdown on foreign platforms serving local investors.
The Financial Intelligence Unit (FIU) announced Tuesday that the Korea Communications Standards Commission approved the restrictions following reviews on October 6 and 7. KuCoin, BitMart and MEXC are among the exchanges affected.
The FIU said overseas-operated websites will be blocked, while services operating domestically face termination.
Website Restrictions Extend Earlier App Crackdown
The latest action follows restrictions imposed last year on unregistered exchanges’ mobile apps through Google and Apple.
Blocking websites closes another channel through which South Korean investors could access those platforms.
Regulators can now seek website restrictions upon detecting unregistered activity without first securing a court ruling or establishing that customers have suffered financial losses.
The FIU did not announce an expiration date for the restrictions or give the affected exchanges a deadline to register.
Crypto exchanges seeking to legally serve South Korean customers must register with the FIU and comply with the country’s security and anti-money laundering requirements.
Only 28 virtual asset service providers are currently registered with the regulator.
The FIU said it has referred 44 unregistered operators to investigators. It also plans to pursue additional restrictions against platforms that resume operations through different website addresses.
KuCoin said it respects applicable laws across jurisdictions and continues to strengthen its compliance framework as regulatory requirements evolve. A spokesperson added that user assets remain safe and that further updates would be communicated through official channels.
BitMart, Phemex and MEXC did not immediately respond to CoinDesk’s requests for comment.
Authorities Plan Support for Customer Withdrawals
The FIU warned that investors using unauthorized platforms could encounter difficulties recovering their funds.
It urged traders to verify whether their exchange is registered and withdraw assets from unregistered operators.
The watchdog said it will cooperate with the Digital Asset eXchange Alliance, known as DAXA, to assist customers whose withdrawals are complicated by access restrictions.
That support is intended to address problems caused by the blocks, although the announcement did not detail how individual withdrawal cases would be handled.
The enforcement action comes as South Korea develops a wider regulatory framework for cryptocurrency businesses.
Its proposed Digital Asset Basic Law has yet to take effect. The legislation would establish rules covering digital asset issuance, trading, custody and supervision.
Separately, the Financial Services Commission and Financial Supervisory Service announced rules in April removing exchanges’ discretion to allow users to bypass holding periods.
Stricter domestic rules have accompanied substantial transfers to overseas platforms. An estimated $110 billion in crypto left South Korean exchanges in 2025, according to figures cited in the report.
