South Korea Blocks KuCoin, MEXC, BingX and 24 Other Crypto Exchange Websites
Key Takeaways
- •South Korea has blocked domestic access to 27 cryptocurrency exchange websites, including KuCoin, MEXC, BingX and Phemex, for operating without registration with the Financial Intelligence Unit.
- •The website restrictions extend earlier measures from April 2025 that blocked Apple App Store and Google Play applications of unregistered foreign exchanges.
- •Operating an unregistered exchange that targets Korean customers 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 a June 2026 DAXA investigation found trading fees of 1.5% to 10% at certain unregistered platforms versus a 0.16% average on South Korea's five major registered exchanges.
- •Customers holding assets on the blocked platforms may face withdrawal difficulties, and regulators intend to coordinate with DAXA and the exchanges to provide guidance while monitoring replacement domains that could expand the block list.
South Korea has ordered domestic access restrictions on 27 cryptocurrency trading websites, including KuCoin, MEXC, BingX and Phemex, extending its crackdown on overseas exchanges that operate without local regulatory registration. Other affected platforms include Poloniex, BTCC, BitMart, XT, Bitrue, CoinW and DigiFinex.
The country's Financial Intelligence Unit (FIU) confirmed the website-blocking decision on October 13, following regulatory reviews conducted on October 6 and 7. The Korea Media and Communications Standards Commission approved the restrictions at the FIU's request, as outlined in an official notice published by the Financial Services Commission, the FIU's parent regulator.
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.
From App Store Bans to Browser Blocks
The website restrictions build on earlier measures that prevented users in South Korea from installing or updating applications operated by unregistered foreign exchanges. In April 2025, South Korea blocked Apple apps belonging to 14 overseas cryptocurrency operators, including KuCoin and MEXC, while Google Play restrictions stopped new installations and updates of apps 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.
Criminal Penalties for Unregistered Exchanges
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 fall within the law when they actively target Korean customers, for instance 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. For users, those figures underline the practical divide between registered venues, which hold ISMS certification and operate under anti-money laundering obligations, and the unregistered platforms now facing blocks.
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 — meaning the current list of 27 blocked sites could grow.
The FIU currently recognizes 28 registered virtual asset service providers in South Korea and has advised customers using unregistered platforms to withdraw their assets, making the registry the practical reference point for determining which trading services operate lawfully in the country.
Source: Crypto Adventure
