- South Korea is blocking the websites of 27 unregistered crypto exchanges, including KuCoin, BitMart and MEXC.
- Foreign exchanges must register with the Financial Intelligence Unit to legally serve South Korean customers.
- Regulators warned users of unauthorized platforms to verify registration and withdraw their assets.
South Korea exchanges are facing tighter access controls as regulators expand earlier restrictions from mobile apps to websites. The Financial Intelligence Unit said 27 unregistered crypto exchanges will have their websites blocked, including KuCoin, BitMart and MEXC. The action follows reviews on Oct. 6 and 7 and was approved by the Korea Communications Standards Commission, according to the FIU announcement on Tuesday. Regulators said the move is intended to stop unauthorized operators from serving local users before investor losses are reported. The latest step also adds to earlier app restrictions on Google and Apple and increases pressure on foreign platforms that have not registered to legally serve South Korean customers.
South Korea exchanges face wider restrictions
The latest measure broadens South Korea’s earlier crackdown on unregistered foreign trading platforms. Last year, authorities restricted access to mobile apps linked to these exchanges through Google and Apple. The new website blocking order now targets another access route used by local investors.
The FIU said websites operated from overseas will be blocked, while websites operating domestically will face service termination. It added that regulators can now seek website restrictions as soon as unregistered activity is detected, without waiting for a court ruling or evidence that customers have already suffered losses.
Registration rules for South Korea exchanges
The FIU said foreign exchanges must register if they want to legally operate in the country and serve South Korean customers. To do that, they must meet the country’s security and anti-money-laundering requirements.
The regulator did not provide a timeline for how long the new restrictions will remain in place. It also did not set a deadline for affected exchanges to complete registration, leaving the legal route open but without a stated timetable in the announcement.
Exchanges and regulator warnings
A KuCoin spokesperson said the company respects applicable laws and regulations across jurisdictions and continues to strengthen its compliance framework as regulatory requirements change. The spokesperson also said user assets remain safe and secure and that any further updates would be shared through official channels.
BitMart, Phemex and MEXC did not immediately respond to a request for comment. At the same time, the financial watchdog warned that users of unauthorized platforms may face problems recovering their funds and told investors to check whether an exchange is registered.
Broader enforcement in South Korea
The FIU said it has referred 44 unregistered operators to investigators and will seek further blocks against websites that reopen under different addresses. It also said only 28 virtual asset service providers are currently registered with the regulator.
The agency said it will work with the Digital Asset eXchange Alliance, or DAXA, to help affected customers withdraw funds if access restrictions create difficulties. Separately, South Korea’s proposed Digital Asset Basic Law has not yet come into force, but it is intended to set the groundwork for a legal framework covering issuance, trading, custody and supervision.
Conclusion
The latest action shows South Korea exchanges are under closer scrutiny as regulators move beyond app restrictions and block websites linked to 27 unregistered crypto platforms. The FIU said exchanges that want to legally serve South Korean customers must register and meet security and anti-money-laundering standards. It also warned users that unauthorized platforms may create recovery problems if issues arise, while promising to work with DAXA where access restrictions affect withdrawals. With 44 unregistered operators referred to investigators and only 28 virtual asset service providers currently registered, the crackdown signals a broader effort to limit unauthorized crypto activity in the country
Disclaimer
The information provided in this article is for informational purposes only and should not be considered financial advice. The article does not offer sufficient information to make investment decisions, nor does it constitute an offer, recommendation, or solicitation to buy or sell any financial instrument. The content is opinion of the author and does not reflect any view or suggestion or any kind of advise from CryptoNewsBytes.com. The author declares he does not hold any of the above mentioned tokens or received any incentive from any company.
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