South Korea Blocks 27 Unregistered Crypto Exchange Websites Including KuCoin, MEXC

South Korean financial regulators have authorized the blocking of domestic access to 27 cryptocurrency exchange websites operated by unregistered virtual asset service providers, expanding enforcement that began with mobile app restrictions earlier this year.

The Financial Intelligence Unit (FIU) announced the decision Tuesday after the Korea Communications Standards Commission reviewed the platforms on October 6 and 7. The affected exchanges include major global platforms KuCoin, MEXC, Phemex, Bitrue, CoinW, BTCC, BitMart, BingX, and DigiFinex, along with 18 others that have not registered under South Korea’s Act on Reporting and Using Specified Financial Transaction Information — the country’s primary anti-money laundering framework for virtual assets.

“With this decision, blocking measures against illegal virtual asset operators will also apply to internet websites, following apps such as those on Apple and Google,” the FIU stated.

The blocks target platforms the FIU determines are actively courting South Korean users. Regulators assess targeting through three criteria: availability of Korean-language interfaces, marketing directed at Korean residents, and support for Korean won-denominated transactions. The measures involve either terminating domestically hosted services or restricting access to overseas-hosted websites at the network level.

This action extends a crackdown that began in April 2025, when authorities blocked downloads and updates for 14 unregistered exchange apps on Apple’s App Store and 17 on Google Play. The FIU acknowledged that website restrictions could complicate fund withdrawals for existing Korean users on these platforms and said it would coordinate withdrawal guidance through the Digital Asset eXchange Alliance (DAXA), a self-regulatory body comprising South Korea’s five licensed exchanges: Upbit, Bithumb, Coinone, Korbit, and Gopax.

South Korea requires all virtual asset service providers serving its residents to register with the FIU, implement real-name verification through banking partnerships, and comply with travel rule requirements for transaction monitoring. As of October 2025, fewer than 40 entities have secured registration. Unregistered operators face penalties of up to five years imprisonment and fines of 50 million won (approximately $36,000).

The enforcement coincides with a sharp market contraction. Industry data shows combined operating profits at South Korea’s registered exchanges plunged 78% in the first half of 2025 compared to the same period last year, driven by declining trading volumes and a prolonged crypto winter. Regulators have signaled continued scrutiny of cross-border platforms, with the FIU indicating additional website blocks are under review.

Unlike jurisdictions that have pursued licensing regimes for offshore exchanges — such as the European Union’s MiCA framework or Dubai’s VARA regime — South Korea has maintained a strict territorial approach, treating any platform actively targeting Korean users as subject to domestic registration requirements regardless of incorporation location.