South Korea is widening its enforcement against unauthorized cryptocurrency exchanges by blocking 27 platforms’ websites, including KuCoin, BitMart and MEXC. The move expands restrictions that previously targeted mobile apps and makes it harder for local investors to access unregistered foreign trading services.
The Financial Intelligence Unit (FIU) said Tuesday that the Korea Communications Standards Commission approved the website restrictions following reviews conducted on Oct. 6 and 7. The FIU explained that websites run by overseas operators would be blocked, while domestic operators would face the termination of their services.
The latest measure shuts down another access point for South Korean users after authorities restricted the exchanges’ mobile applications on Google and Apple platforms last year. Regulators can now request website blocks once they identify unregistered operations, without waiting for a court ruling or evidence that investors have already suffered losses.
The FIU has not announced how long the restrictions will remain in place or given the affected exchanges a registration deadline. To legally provide services to South Korean customers, however, exchanges must register with the FIU and meet domestic security and anti-money laundering (AML) standards.
A KuCoin representative said the exchange respects the applicable laws and regulations in every jurisdiction where it operates and continues to update its compliance framework as regulatory expectations change. The spokesperson added that customer assets remain safe and that any further announcements would be made through the company’s official channels.
BitMart, Phemex and MEXC had not responded to CoinDesk’s requests for comment at the time of reporting.
South Korea is also preparing a proposed Digital Asset Basic Law, which has not yet taken effect. The legislation is expected to establish rules governing digital asset issuance, trading, custody and regulatory supervision. Separately, the Financial Services Commission and Financial Supervisory Service introduced rules in April that eliminated exchanges’ ability to let users bypass mandatory asset holding periods.
According to the FIU, 44 unregistered operators have been referred to investigators. The agency also plans to seek additional blocks if exchanges attempt to resume operations through replacement website addresses. Only 28 virtual asset service providers are currently registered with the regulator.
Authorities warned that investors using unauthorized platforms may face problems recovering their funds. The FIU said it would coordinate with the Digital Asset eXchange Alliance (DAXA) to assist customers with withdrawals if the website restrictions prevent them from accessing their accounts. Investors were also advised to confirm whether their exchanges are registered and withdraw assets held on unauthorized platforms.
The restrictions come as South Korean investors continue moving substantial amounts of cryptocurrency abroad amid increasingly strict domestic regulations. An estimated $110 billion flowed out of South Korean exchanges in 2025.
