South Korea Blocks 27 Crypto Exchange Sites, Including KuCoin and MEXC

South Korean authorities have decided to block access to 27 websites operated by unregistered cryptocurrency exchanges and other virtual asset providers, including KuCoin, MEXC, Phemex, and Bitrue. This decision was announced in a statement by South Korea's Financial Intelligence Unit (FIU) and was made possible following a recent review conducted by the country's Media and Telecommunications Standards Commission on October 6 and 7. The list of blocked platforms also includes CoinW, BTCC, BitMart, BingX, and DigiFinex. The block targets crypto sites that are not registered under the Act on Reporting and Use of Certain Financial Transaction Information, which regulates anti-money laundering efforts. The FIU stated, "With this decision, blocking measures against illegal virtual asset operators will also be applied to internet sites, in addition to apps available on Apple and Google."

The measures include halting services hosted in the country or blocking access to sites located abroad. This initiative follows previously imposed restrictions on mobile applications. In April 2025, South Korea blocked downloads and updates for 14 unregistered cryptocurrency exchange apps on the Apple App Store as a result of restrictions imposed on 17 apps through Google Play. The FIU determines whether foreign operators are targeting Korean customers based on the availability of Korean-language services, marketing to South Korean users, or support for transactions in Korean won. However, authorities acknowledged that blocking sites might complicate fund withdrawals for existing users and stated their intention to provide necessary instructions for withdrawal through the Digital Asset eXchange Alliance (DAXA), in collaboration with operators.

Under the new model, site blocking can occur without waiting for the completion of criminal investigations or confirmed client losses. Violations by unregistered virtual assets are considered offenses under the Act on Specific Financial Information. Operations without the necessary registration may result in a prison term of up to five years or a fine of up to 50 million won. The FIU also reported that 44 unregistered operators have been referred to investigative authorities on suspicion of engaging in illegal activities. Currently, 28 virtual asset providers are registered with the FIU, and authorities advise clients to check the registration status of an operator before depositing funds, as well as to withdraw assets from companies identified as unregistered. Regulators urged clients to be cautious of offers promising "high returns" or "capital return guarantees," as these may indicate fraudulent activity.