South Korea has ordered domestic access restrictions on 27 cryptocurrency trading websites, including KuCoin, MEXC, BingX and Phemex, extending its crackdown on overseas exchanges operating without local regulatory registration.
The country’s Financial Intelligence Unit (FIU) confirmed the website-blocking decision on October 13, following regulatory reviews conducted on October 6 and 7.
Other affected platforms include Poloniex, BTCC, BitMart, XT.com, Bitrue, CoinW and DigiFinex.
The restrictions follow earlier measures preventing users in South Korea from installing or updating applications operated by unregistered foreign exchanges through Apple’s App Store and Google Play.
South Korea Expands Crypto Restrictions From Apps to Websites
The Korea Media and Communications Standards Commission approved the website restrictions following requests from the FIU, which operates under the Financial Services Commission.
Authorities distinguish between blocking access to overseas-hosted websites and terminating services operated domestically. Both measures target cryptocurrency businesses that have not completed the required local registration.
South Korea had already blocked Apple apps belonging to 14 overseas cryptocurrency operators in April 2025, including KuCoin and MEXC.
Google Play restrictions had also prevented new installations and updates of applications associated with unregistered exchanges.
The latest action extends those restrictions to browser-based trading, removing another access channel for domestic customers using the affected platforms.
Unregistered Exchanges Face Criminal Penalties
South Korea requires virtual asset service providers to register with the FIU under the Act on Reporting and Using Specified Financial Transaction Information.
Requirements include Information Security Management System (ISMS) certification and compliance with applicable anti-money laundering obligations.
Foreign exchanges can fall within the law when they actively target Korean customers through Korean-language websites, domestic marketing campaigns or Korean won payment services.
Operating without registration can result in up to five years of imprisonment or a fine of 50 million won.
The FIU has referred 44 unregistered operators to investigative authorities and instructed licensed domestic exchanges to restrict cryptocurrency transfers involving unregistered businesses.
A June 2026 joint investigation by the Digital Asset eXchange Alliance (DAXA) also identified trading fees of between 1.5% and 10% at certain unregistered operators, substantially higher than the 0.16% average reported across South Korea’s five major won-based exchanges.
Existing Customers May Face Withdrawal Difficulties
The FIU acknowledged that blocking websites could complicate withdrawals for customers who already hold cryptocurrency on the affected exchanges.
Regulators plan to coordinate with DAXA and the relevant platforms to provide guidance on accessing accounts and withdrawing remaining assets.
The restrictions do not establish that customers’ cryptocurrency holdings have been seized or that the exchanges have ceased operating internationally.
The latest enforcement measures come alongside tighter domestic exchange oversight, including DAXA’s API security requirements introduced earlier in 2026.
South Korean authorities also intend to monitor replacement domains and alternative websites used by unregistered operators, allowing additional blocking requests when new access points are identified.
The FIU currently recognizes 28 registered virtual asset service providers in South Korea and has advised customers using unregistered platforms to withdraw their assets.
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