South Korea Blocks 27 Crypto Exchange Sites, Including KuCoin and MEXC

Seoul Takes Its Crackdown From App Stores to the Open Web

South Korea has moved to cut off one of the last easy routes local traders had to offshore crypto exchanges.

The country’s Financial Intelligence Unit (FIU) announced Tuesday that it will block domestic access to 27 websites run by unregistered virtual asset businesses. The named platforms include KuCoin, MEXC, Phemex, Bitrue, CoinW, BTCC, BitMart, BingX and DigiFinex, according to Cointelegraph.

The decision followed reviews by Korea’s communications standards commission on October 6 and 7. “With this decision, blocking measures against illegal virtual asset operators will also apply to internet websites,” the FIU said.

How the Block Works

The regulator’s official press release sets out two routes. Platforms with servers or operators inside South Korea will have their domestic accounts terminated. Sites run from overseas will have their access blocked for users in the country.

Not every foreign exchange is a target. Authorities judge whether an overseas operator targets Korean customers by looking for three signs: Korean-language services, marketing to South Korean users, and support for trading in Korean won.

The FIU also said it will continue monitoring alternative web addresses. Blocked operators may try to dodge the measure by moving to a new domain, and the regulator plans to request further blocks when they do.

Why Registration Is the Line That Matters

For beginners, the key word here is “registered.” It explains why a big global exchange can be legal in many countries and still be treated as illegal in Korea.

Under Korea’s anti-money laundering law, the Act on Reporting and Using Specified Financial Transaction Information, any business offering crypto trading to Korean users must register with the FIU. Registration means the platform agrees to operate under the country’s anti-money laundering rules and supervision.

An exchange that skips this step operates outside that system, regardless of its size or reputation elsewhere. That is why the FIU doesn’t need to prove users were harmed before acting: the regulator treats operating without registration as illegal in itself.

According to the FIU, only 28 virtual asset operators are currently registered, and the regulator publishes the full list on its website. Anyone in Korea choosing the best crypto exchange for their needs now has a short, public list to check against.

The Penalties Behind the Crackdown

The consequences are serious on both sides of a trade. Running an unregistered crypto business in Korea carries up to five years in prison or a fine of up to 50 million won, the FIU said.

Registered exchanges are also on the hook. Those that deal with unregistered operators face administrative fines of up to 100 million won per violation, plus sanctions on the company and its staff. The FIU has separately referred 44 unregistered operators to investigative authorities.

Rules amended in May 2024 already restrict buying crypto from unregistered platforms with a Korean credit card.

What Users of Blocked Platforms Are Being Told

The FIU acknowledged that the blocks could make withdrawals harder for people who already hold funds on these exchanges. Its guidance is direct: if a platform is confirmed as unregistered, withdraw assets and deposits immediately.

The Digital Asset eXchange Alliance (DAXA) will help existing users with withdrawal procedures. The regulator also warned users never to share private keys, login details, or copies of their ID with unregistered operators.

For anyone moving funds out, the destination matters. The FIU urges users to check that any platform they use appears on its registered list, while a crypto wallet the user controls keeps assets off any exchange entirely.

A Long Campaign Reaches Its Next Stage

This is not a sudden change of direction. In April 2025, Korea blocked downloads and updates for 14 unregistered exchange apps on Apple’s App Store, after restricting 17 apps on Google Play.

Those app blocks had gaps. Seoul Economic Daily reported that BTCC resumed business about two months after Apple blocked its exchange app by adding trading features to a separate wallet app. The authorities later removed that wallet app from both app stores.

The pattern of enforcement, followed by workarounds, followed by tighter enforcement, has been building for some time. Digitap previously covered how South Korea’s FIU targeted domestic exchanges over AML failures, showing the regulator’s scrutiny applies at home as well as abroad.

Could the Block Actually Stick?

Website blocks are rarely airtight. Determined users may try other routes, and offshore operators have shown they can adapt quickly. Much depends on how quickly the FIU can spot and shut down mirror sites.

Still, the combined pressure appears designed to make offshore trading inconvenient rather than impossible. With app stores, card payments, transfers from registered exchanges and now websites all restricted, the practical cost of using an unregistered platform from Korea keeps rising.

A Market Pulling Its Traders Back Home

The bigger picture is a country trying to keep its retail crypto traders inside its own regulated walls. The steady stream of app blocks, workarounds, and new blocks shows how persistent demand for offshore platforms has been.

Seoul’s message is that this choice now carries real friction and real risk. If the blocks hold, trading volume that once flowed to offshore platforms could shift back toward the 28 registered operators.

For the global exchanges named, the decision is a reminder that reach and reputation do not replace a local licence. As more countries tie market access to registration, the exchanges able to serve the most users may be the ones willing to sign up to the most rulebooks.