South Korea Moves to Block 27 Crypto Sites, Including KuCoin and MEXC

South Korea is preparing to restrict domestic access to 27 websites linked to unregistered cryptocurrency exchanges and virtual asset service providers, escalating its efforts to bring offshore crypto platforms serving local users under regulatory oversight.

The Financial Intelligence Unit (FIU) announced on Tuesday that the decision followed reviews conducted by the Korea Media and Communications Standards Commission on October 6 and 7. The targeted platforms include KuCoin, MEXC, Phemex, Bitrue, CoinW, BTCC, BitMart, BingX and DigiFinex.

The restrictions apply to operators that have not registered under South Korea’s Act on Reporting and Using Specified Financial Transaction Information, the country’s anti-money laundering framework for financial service providers.

According to the FIU, the latest measures extend enforcement beyond mobile applications to websites. Authorities can either terminate services hosted within South Korea or block domestic access to websites operated from overseas.

South Korea Extends Crackdown Beyond Crypto Apps

The website restrictions build on earlier action against unregistered trading platforms in mobile app stores. In April 2025, South Korea blocked downloads and updates for 14 crypto exchange applications on Apple’s App Store, following restrictions affecting 17 applications on Google Play.

The expanded approach reflects the authorities’ efforts to limit access to platforms operating without the required registration, including overseas providers that solicit South Korean customers.

To determine whether a foreign platform is targeting the local market, the FIU considers several factors, including the availability of Korean-language services, marketing directed at South Korean users and support for transactions denominated in Korean won.

These criteria help authorities distinguish platforms actively serving domestic customers from overseas services that may not specifically target the South Korean market.

Authorities Warn Users Could Face Withdrawal Difficulties

The restrictions could create complications for customers who already hold assets on the affected platforms. The FIU acknowledged that blocking website access may make it harder for existing users to withdraw their funds.

To address the issue, the agency said it plans to provide withdrawal guidance and assistance through the Digital Asset eXchange Alliance (DAXA), with cooperation from the affected operators.

The announcement did not indicate that users’ assets would automatically be confiscated. However, the acknowledged risk of withdrawal difficulties puts the practical consequences for existing customers at the center of the enforcement effort.

For South Korean crypto users, the immediate priority will be understanding how to access their accounts and withdraw holdings before restrictions interfere with those processes.

The South Korea crypto website ban highlights the compliance challenges facing offshore exchanges that serve South Korean customers without local registration.

It also shows a potential tension in enforcement: restricting unregistered platforms may strengthen regulatory oversight, but it can complicate access for customers who already use them.