TLDR
- South Korea has approved blocks on 27 websites run by unregistered crypto exchanges, including KuCoin, MEXC, Phemex and Bitrue.
- The blocks follow two regulatory reviews held on October 6 and 7.
- Authorities have referred 44 unregistered operators to investigators.
- The Financial Intelligence Unit (FIU) says customers may have trouble withdrawing funds and plans to offer guidance.
- Regulators plan to watch for new domains and request more blocks.
South Korea has approved measures to block domestic access to 27 websites run by unregistered crypto exchanges. The list includes KuCoin, MEXC, Phemex, Bitrue, CoinW, BTCC, BitMart, BingX and DigiFinex.
South Korea Orders Website Blocks on 27 Unregistered Overseas Crypto Exchanges, Including KuCoin, MEXC and BingX
South Korea’s Financial Intelligence Unit (FIU) announced that the country’s communications review authority has ordered domestic access restrictions on 27… pic.twitter.com/TWnze71oUY
— Wu Blockchain (@WuBlockchain) October 13, 2026
The Financial Intelligence Unit announced the decision on Tuesday. It followed reviews by the Korea Media and Communications Standards Commission on October 6 and 7.
The Financial Services Commission said the communications review authority approved the restrictions at the FIU’s request. The decision extends existing limits on foreign crypto apps to websites.
The rules apply to platforms that have not registered under the country’s anti-money laundering law. Sites hosted overseas will be blocked from domestic access. Sites with domestic servers or operators will face service termination.
How the Earlier App Restrictions Led to This Step
The move follows earlier limits on mobile apps. Google Play began restricting 17 unregistered exchange apps in March 2025. Apple added similar controls in April 2025, affecting 14 apps.
Under those rules, users could no longer install the apps or get updates through domestic app stores. The government has kept reviewing overseas operators that serve Korean customers without approval.
The FIU said it can now request website blocks once unregistered activity is identified. It does not need to wait for a finished criminal case or confirmed customer losses.
Regulators look at several factors to decide if an overseas platform targets Korean users. These include Korean-language services, marketing to Korean customers and support for payments in Korean won.
Penalties, Fees and Customer Risks
Operating without registration can lead to up to five years in prison or a fine of up to 50 million won. Authorities have referred 44 unregistered operators to investigative agencies. The commission has not said whether all of those referrals led to charges.
Registered crypto businesses have been told to restrict transfers involving unregistered operators. Licensed firms that break these rules can face fines of up to 100 million won per violation.
In April 2026, the FIU said Coinone had processed 10,113 transfers involving 16 unregistered foreign providers. That followed an inspection that found several compliance violations.
The FIU also raised concerns about customer protection. It said risks include data leaks, hacking, money laundering and paying for crypto that is never delivered. Recovering losses can be hard when a firm falls outside domestic safeguards.
A June 2026 investigation by the Digital Asset Exchange Alliance and registered operators found trading fees of 1.5% to 10% at the businesses reviewed. The five major won-based exchanges charge an average of 0.16%. Some operators charged about 62 times that average.
The FIU acknowledged the blocks could make withdrawals harder for current users. It plans to give withdrawal guidance with help from the alliance and the operators. No universal withdrawal deadline has been set.
There are currently 28 virtual asset service providers registered with the FIU. The agency urges customers to check an operator’s registration before depositing money. It also advises withdrawing funds from unregistered businesses.
The FIU will monitor alternative domains that blocked exchanges might use. If it finds replacement sites, it plans to request further reviews and blocks.
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