Cryptoupdated 44m ago2 min read
South Korea Blocks 27 Unregistered Overseas Crypto Exchanges, Including KuCoin, BitMart, MEXC
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Korea blocks websites of 27 unregistered overseas crypto exchanges, including KuCoin, BitMart, MEXC. FIU announced the measure, with KCSC approval for website restrictions.
9 outlets told this the same way.
Websites blocked, apps earlier
South Korea’s Financial Intelligence Unit ordered access restrictions on the websites of 27 unregistered overseas cryptocurrency exchanges, including KuCoin, BitMart and MEXC, after the Korea Communications Standards Commission approved the move following reviews on Oct. 6 and 7.
“The country’s Financial Intelligence Unit (FIU) announced Tuesday that the Korea Communications Standards Commission approved the restrictions following reviews on Oct. 6 and 7.”
The FIU said websites operated from overseas will be blocked, while those operating domestically face service termination, extending earlier restrictions that targeted mobile apps.
The FIU said regulators can seek website blocks as soon as they detect unregistered activity, without waiting for a court ruling or evidence that customers have lost money.
A KuCoin spokesperson said, "User assets remain safe and secure, and we will communicate any further updates through our official channels."
The FIU did not specify how long the restrictions will last or set a deadline for the exchanges to register.
Registration, penalties, and fees
South Korea’s regulators said any exchange that wants to legally operate in the country and serve South Korean customers must register with the FIU and meet the country’s security and anti-money laundering (AML) requirements. South Korean law requires companies dealing in virtual assets to obtain an Information Security Management System (ISMS) certification and register their activities with the FIU, and operating without registration can carry penalties including up to five years in prison or a fine of up to 50 million won. The FIU warned that traders using unauthorized platforms could face difficulties recovering their funds, and the FIU will work with the Digital Asset eXchange Alliance (DAXA) to help affected customers withdraw their funds where access restrictions create problems.
An industry investigation conducted in June found trading fees on unregistered platforms ranged from 1.5% to 10%, compared with an average fee of approximately 0.16% on South Korea’s five largest exchanges offering trading pairs denominated in won. The FIU said it has referred 44 unregistered operators to investigators and will seek further blocks against websites that reopen under different addresses.
Enforcement expands beyond apps
South Korea’s enforcement approach shifted from app-store restrictions to website blocks, with the FIU framing the action as extending measures that began in app stores. In March 2025, at the FIU’s request, Google Play restricted new installs and updates for 17 overseas exchange apps, and Apple later applied similar limits. The FIU acknowledged that website blocks could complicate withdrawals for existing users and said it plans to provide withdrawal guidance and support through DAXA, with cooperation from the operators.
“The FIU acknowledged the website blocks could complicate withdrawals for existing users.”
The FIU warned that users could face difficulties accessing funds or making withdrawals, and authorities assess whether exchanges operate locally based on factors including Korean-language websites, marketing targeting South Korean users and support for payments in won. The FIU urged users of unregistered platforms to withdraw their assets immediately, while it also said registered exchanges were barred from sending crypto to unregistered platforms.