SKN | South Korea Moves to Block 27 Crypto Websites, Including KuCoin and MEXC

Key Points

• South Korea has approved measures to block domestic access to 27 websites operated by unregistered cryptocurrency exchanges and other virtual asset service providers, including KuCoin, MEXC, Phemex and Bitrue.
• The restrictions target platforms that have not registered under the country’s anti-money laundering legislation and extend existing enforcement measures beyond mobile applications to websites.
• Authorities acknowledged that affected customers could face difficulties withdrawing their assets and plan to provide guidance through the Digital Asset eXchange Alliance (DAXA).

South Korea Expands Crackdown on Unregistered Crypto Platforms

South Korea is expanding its enforcement against unregistered cryptocurrency service providers by moving to block access to 27 websites, including those operated by major international exchanges such as KuCoin and MEXC.

In an announcement on Tuesday, the country’s Financial Intelligence Unit (FIU) said the decision followed reviews conducted by the Korea Media and Communications Standards Commission on October 6 and 7.

The targeted platforms include Phemex, Bitrue, CoinW, BTCC, BitMart, BingX and DigiFinex. Authorities said the restrictions apply to virtual asset service providers that have not registered under the Act on Reporting and Using Specified Financial Transaction Information, South Korea’s anti-money laundering legislation.

The decision extends enforcement beyond mobile applications to websites, limiting access to platforms that authorities consider to be operating without the required registration.

Website Restrictions Extend Existing Enforcement

The latest measures build on earlier efforts to restrict access to unregistered cryptocurrency exchanges through mobile app stores.

In April 2025, South Korean authorities moved to block downloads and updates for 14 unregistered crypto exchange applications on Apple’s App Store, following restrictions affecting 17 applications on Google Play.

The new website restrictions broaden that approach by targeting the online services themselves. Depending on the circumstances, authorities may terminate services hosted domestically or block access to websites operated overseas.

The FIU said authorities assess whether foreign platforms are targeting South Korean customers by examining factors such as the availability of Korean-language services, marketing directed at local users and support for transactions in Korean won.

These criteria help regulators determine whether an overseas operator is effectively serving the South Korean market without meeting domestic registration requirements.

Authorities Acknowledge Potential Withdrawal Problems

The website blocks could create practical difficulties for South Korean customers who already hold assets on the affected platforms. The FIU acknowledged that restrictions may complicate withdrawals, raising concerns for users who need to transfer funds before access is disrupted.

To address the issue, authorities said they plan to provide withdrawal guidance and support through the Digital Asset eXchange Alliance, known as DAXA, in cooperation with the operators.

However, the announcement did not specify a detailed withdrawal timetable or explain how individual platforms will handle customer requests once access restrictions take effect.

Users with assets on affected exchanges may therefore need to monitor official announcements and available withdrawal instructions closely. Access restrictions do not, by themselves, establish that customer assets have been confiscated, but they can make account access and asset transfers more complicated.

Outlook

South Korea’s decision signals a broader effort to enforce registration requirements across the cryptocurrency sector, with website blocking now complementing restrictions on mobile applications. The measures could increase pressure on overseas exchanges seeking access to South Korean customers without complying with local anti-money laundering rules.

The immediate concern will be how the restrictions affect existing users, particularly those attempting to withdraw or transfer assets. The effectiveness of the enforcement campaign will depend on implementation and coordination with affected platforms, while the planned assistance through DAXA will be important in limiting disruption for customers.