South Korea is blocking access to the websites of 27 unregistered cryptocurrency exchanges, including KuCoin, BitMart, and MEXC. The Financial Intelligence Unit announced the action after the Korea Communications Standards Commission approved the restrictions following reviews on October 6 and 7.
The move extends enforcement beyond mobile app restrictions imposed last year. Websites operated from overseas will be blocked, while those operating domestically face service termination. Regulators can now seek website blocks upon detecting unregistered activity without requiring a court ruling or evidence of customer losses.
Registration Requirements
Foreign exchanges must register with the Financial Intelligence Unit and comply with the country's security and anti-money laundering requirements to legally operate in South Korea. The FIU did not specify how long the restrictions will last or set a deadline for exchanges to register.
KuCoin stated in response: "We respect applicable laws and regulations across jurisdictions and continuously strengthen our compliance framework in response to evolving regulatory requirements. User assets remain safe and secure, and we will communicate any further updates through our official channels." BitMart, Phemex, and MEXC did not immediately respond to requests for comment.
Broader Regulatory Effort
The FIU has referred 44 unregistered operators to investigators and indicated it will seek further blocks against websites that reopen under different addresses. Currently, only 28 virtual asset service providers are registered with the regulator.
South Korea's proposed Digital Asset Basic Law, not yet in force, would establish a legal framework for digital assets including issuance, trading, and custody. In April, the Financial Services Commission and Financial Supervisory Service announced new rules removing discretion that had allowed exchanges to let users bypass holding periods.
Investor Protections and Warnings
Regulators warned that traders using unauthorized platforms may face difficulties recovering their funds. The FIU said it will work with the Digital Asset eXchange Alliance to help affected customers withdraw funds where access restrictions create problems. Investors have been urged to verify whether their exchange is registered and to withdraw assets from unauthorized operators.
South Korean investors have been moving substantial amounts of cryptocurrency overseas for months due to stricter domestic rules, with an estimated $110 billion leaving domestic exchanges during 2025.
