South Korea's Financial Intelligence Unit announced Tuesday that authorities approved measures to block access to 27 websites operated by unregistered cryptocurrency exchanges and other virtual asset service providers, including KuCoin and MEXC, according to CoinDesk and Cointelegraph. Both outlets report the decision followed reviews on Oct. 6 and 7 by the country's communications standards commission. The measures involve terminating services for platforms hosted domestically and blocking access to sites operated from overseas, the FIU said. The platforms named in the two reports include KuCoin, MEXC, Phemex, BitMart, Bitrue, CoinW, BTCC, BingX and DigiFinex; neither outlet published the complete list of 27.
South Korea approves blocking of 27 unregistered crypto exchange websites
South Korea's Financial Intelligence Unit announced Tuesday that authorities approved measures to block access to 27 websites operated by unregistered cryptocurrency exchanges and other virtual asset service providers, including KuCoin and MEXC, according to CoinDesk and Cointelegraph. Both outlets report the decision followed reviews on Oct. 6 and 7 by the country's communications standards commission. The measures involve terminating services for platforms hosted domestically and blocking access to sites operated from overseas, the FIU said. The platforms named in the two reports include KuCoin, MEXC, Phemex, BitMart, Bitrue, CoinW, BTCC, BingX and DigiFinex; neither outlet published the complete list of 27.
To legally serve South Korean customers, foreign exchanges must register with the FIU and meet the country's security and anti-money-laundering requirements, according to CoinDesk. Cointelegraph reports the block applies to platforms that have not registered under the Act on Reporting and Using Specified Financial Transaction Information, the country's anti-money-laundering legislation.
The FIU said authorities determine whether overseas operators target Korean customers by examining whether platforms offer Korean-language services, market to South Korean users, or support transactions in Korean won, according to Cointelegraph.
CoinDesk reports that the restrictions follow earlier action against mobile apps: authorities restricted access to unregistered exchanges' apps on Google and Apple in the previous year. Cointelegraph reported in April 2025 that South Korea had blocked downloads and updates for 14 unregistered crypto exchange apps on Apple's App Store, after restrictions on 17 apps through Google Play.
According to CoinDesk, regulators can now seek website blocks as soon as they detect unregistered activity, without waiting for a court ruling or evidence that customers have lost money. The FIU did not specify how long the restrictions will last or set a deadline for exchanges to register.
CoinDesk reports the FIU said it has referred 44 unregistered operators to investigators and will seek further blocks against websites that reopen under different addresses, and that only 28 virtual asset service providers are currently registered with the regulator.
Both outlets report the FIU warned that users of unauthorized platforms could face difficulties recovering or withdrawing funds. CoinDesk reports the FIU said it will work with the Digital Asset eXchange Alliance (DAXA), an industry association, to help affected customers withdraw funds where access restrictions create problems; Cointelegraph reports the FIU plans to provide withdrawal guidance and support through DAXA with cooperation from the operators. CoinDesk adds the regulator urged investors to check whether their exchange is registered and to withdraw assets from unauthorized operators.
CoinDesk reports that South Korean investors have been moving large amounts of crypto overseas for months amid stricter rules, with an estimated $110 billion leaving domestic exchanges in 2025. It also notes that South Korea's proposed Digital Asset Basic Law, which has not come into force, would establish a framework covering issuance, trading, custody and supervision, and that the Financial Services Commission and Financial Supervisory Service announced new rules in April removing exchange discretion to let users bypass holding periods.
Where sources differ
- Source 1 (CoinDesk) names the body that approved the restrictions as the Korea Communications Standards Commission, while Source 2 (Cointelegraph) calls it the Korea Media and Communications Standards Commission.
- The two outlets name different, incomplete subsets of the 27 affected platforms: CoinDesk lists KuCoin, BitMart and MEXC, and separately names Phemex among companies it contacted; Cointelegraph lists KuCoin, MEXC, Phemex and Bitrue and additionally names CoinW, BTCC, BitMart, BingX and DigiFinex. Neither provides the full list of 27.
- Cointelegraph states the FIU plans to provide withdrawal guidance and support through DAXA "with cooperation from the operators," while CoinDesk describes the arrangement as the FIU working with DAXA to help affected customers withdraw funds where access restrictions create problems, without stating that the operators are cooperating.
- Neither source publishes the complete list of the 27 blocked websites and service providers.
- No source states when the blocks take effect or how long they will remain in place, nor whether a registration deadline has been set.
- It is not established whether any affected exchange intends to register with the FIU, pursue legal challenge, relocate, or cease serving South Korean users.
- CoinDesk reports that BitMart, Phemex and MEXC did not immediately respond to its request for comment; no source carries responses from Bitrue, CoinW, BTCC, BingX, DigiFinex or any other named platform.
- Neither source quantifies how many South Korean users or how much in assets are affected by the blocks, or confirms whether any funds have been stranded.
- CoinDesk's estimate that about $110 billion left domestic exchanges in 2025 is not corroborated by any other source supplied, and no source states its methodology or origin.
- The two sources differ on the name of the approving commission, and neither establishes which designation is official.
- No source states whether the FIU's referral of 44 unregistered operators to investigators has led to any enforcement action or charges.
- CoinDesk — original — by Olivier Acuna
- Cointelegraph — by Cointelegraph by Felix Ng