South Korea has intensified its efforts to curb unregistered cryptocurrency trading by blocking 27 exchanges’ websites, including KuCoin, BitMart and MEXC. The decision broadens the government’s crackdown on overseas platforms beyond the mobile app restrictions introduced last year.
The Financial Intelligence Unit (FIU) announced Tuesday that the Korea Communications Standards Commission had approved the website blocks after reviewing the cases on Oct. 6 and 7. According to the FIU, websites operated by foreign exchanges will be restricted, while domestic operators will face the shutdown of their services.
The expanded measures aim to prevent South Korean investors from accessing unauthorized exchanges through alternative channels. After limiting access to their mobile apps on Google and Apple platforms last year, authorities can now pursue website blocks as soon as they identify unregistered activity. They do not need to wait for a court ruling or evidence of financial harm to customers.
The FIU has not specified the duration of the restrictions or provided a deadline for the affected platforms to register. Exchanges seeking to serve customers legally in South Korea must register with the agency and satisfy local cybersecurity and anti-money laundering (AML) requirements.
A KuCoin spokesperson said the company complies with relevant laws across the jurisdictions where it operates and continues to improve its compliance framework in response to changing regulations. The spokesperson added that user assets remain secure and that further information would be communicated through official channels.
BitMart, Phemex and MEXC did not immediately respond to CoinDesk’s requests for comment.
South Korea is also working on a proposed Digital Asset Basic Law, which has yet to come into force. The legislation is intended to establish a comprehensive framework for digital asset issuance, trading, custody and regulatory oversight. In April, the Financial Services Commission and Financial Supervisory Service introduced separate rules removing exchanges’ discretion to allow users to circumvent asset holding periods.
The FIU reported that it has referred 44 unregistered operators to investigators and intends to pursue additional website restrictions if platforms return under different domain names. At present, 28 virtual asset service providers are registered with the regulator.
The agency warned that people trading through unauthorized platforms may struggle to recover their funds. It will work with the Digital Asset eXchange Alliance (DAXA), an industry association, to help users withdraw their holdings if the blocks interfere with access. The FIU also urged investors to verify their exchanges’ registration status and transfer assets away from unregistered providers.
The crackdown comes amid a broader shift of cryptocurrency holdings outside South Korea as domestic regulations tighten. An estimated $110 billion in crypto assets moved away from local exchanges in 2025.
