South Korea to Block 27 Crypto Exchange Websites, Including KuCoin and MEXC

Highlights:

South Korea has ordered the blocking of 27 unregistered cryptocurrency exchange websites, including KuCoin, MEXC, and BingX. The decision expands the country’s crackdown on offshore crypto platforms operating without local registration. Authorities will also target websites that attempt to bypass the restrictions.

According to a report by South Korean news outlet EToday published on October 13, the Financial Intelligence Unit (FIU) confirmed that the country’s broadcasting and media review authority had approved the restrictions. The decision followed two review sessions held on October 6 and 7.

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

South Korea Expands Crypto Exchange Restrictions to Websites

The latest measures target foreign cryptocurrency exchanges that have been serving South Korean customers without completing the required registration process. The affected platforms include KuCoin, MEXC, BingX, Phemex, XT.com, Bitrue, CoinW, Poloniex, BTCC, and BitMart. These are among the 27 websites covered by the decision.

Authorities will block domestic access to websites hosted on overseas servers. Meanwhile, services using servers in South Korea will be terminated. Previously, the FIU requested restrictions on unregistered crypto exchange apps on Google Play and Apple’s App Store. Those measures prevented users from installing new applications or receiving updates.

The latest decision extends those restrictions to exchange websites, further limiting access for South Korean users. Moreover, regulators have strengthened their approach to illegal crypto operations. Authorities can now block websites once they identify unregistered activity, without waiting for confirmed financial losses or the outcome of a criminal investigation. The FIU considers operating an unregistered cryptocurrency business a violation of South Korea’s financial reporting laws.

Unregistered Crypto Exchanges Face Strict Penalties in South Korea

Under South Korean law, cryptocurrency service providers must register with the FIU before offering services in the country. Businesses must also meet regulatory requirements, including obtaining Information Security Management System (ISMS) certification.

The rules apply to foreign exchanges that actively target South Korean customers. Running Korean-language websites, marketing to local residents, or supporting payments in Korean won can bring overseas platforms under these requirements. Companies operating without registration could face penalties of up to five years in prison or fines of up to 50 million won.

So far, the FIU has referred 44 unregistered cryptocurrency businesses to investigative authorities. Regulators have also restricted transfers of digital assets between registered platforms and unregistered operators. In addition, credit card purchases of cryptocurrencies through unregistered providers have been blocked.

South Korean Regulators Warn Crypto Users About Unregistered Platforms

Financial authorities have warned that unregistered exchanges may expose investors to greater security and asset protection risks. A joint industry investigation in June found that flagged platforms charged average trading fees ranging from 1.5% to 10%. By comparison, South Korea’s five major won-based exchanges charged an average of 0.16%.

The investigation found that some fees were up to 62 times higher than those charged by domestic exchanges. Meanwhile, the FIU plans to monitor alternative websites created by restricted operators and request additional blocks where necessary.

For existing customers facing withdrawal difficulties, authorities plan to provide guidance through the Digital Asset Exchange Alliance (DAXA). There are 28 cryptocurrency service providers that have been officially recognized by the FIU in South Korea at the moment. The FIU has warned investors against being lured by such schemes which promise huge returns.

Meanwhile, South Korea is also expanding its regulated crypto services. Jeonbuk Bank recently launched Bitcoin-backed loans for businesses, allowing companies to use Bitcoin as collateral without selling their holdings.