South Korea has ordered the blocking of domestic access to 27 cryptocurrency websites, including KuCoin and MEXC, as part of an escalating regulatory crackdown on unregistered crypto operators. The Financial Intelligence Unit (FIU) disclosed the decision on October 13 following deliberations by the country's communications standards regulator on October 6-7.
The website blocking extends earlier restrictions on app marketplaces, which had already blocked new installations and updates for unregistered operators. Google Play had restricted 17 apps, including KuCoin and MEXC, on March 26, 2025.
Registration Requirements for Foreign Providers
The FIU treats foreign cryptocurrency providers serving Korean customers the same as domestic businesses under South Korean law. Requirements include certification under Korea's Information Security Management System (ISMS). The agency considers several factors when assessing whether a foreign provider is conducting business in the country, including the availability of Korean-language websites, marketing targeted at Korean users, and support for won payments.
Withdrawal Access Concerns
Website blocking can prevent users from accessing existing accounts and requesting withdrawals. The FIU acknowledged that blocking could cause withdrawal restrictions or other inconvenience for existing users who hold assets on affected platforms.
The FIU plans to provide detailed withdrawal methods and procedures through DAXA, a Korean exchange industry group, with cooperation from the operators. However, the announcement does not specify service-by-service implementation timelines or confirmed withdrawal routes for KuCoin or MEXC customers.
User Guidance
The FIU urged users to withdraw their crypto assets and deposits immediately after identifying an unregistered operator. The agency also warned against providing those operators with private keys, login information, or copies of identification.
Authorities indicated they intend to pursue blocking after detecting unregistered business activity without waiting for confirmed user losses or judicial outcomes. The FIU plans to monitor substitute website addresses and seek further blocking reviews if operators continue business under changed addresses.
