South Korea has broadened its crackdown on unregistered cryptocurrency exchanges, moving to block domestic access to 27 websites operated by overseas digital asset platforms, including KuCoin, MEXC, Phemex, and Bitrue. The measure extends regulatory restrictions beyond mobile applications to websites, further tightening access to offshore crypto trading services for users in South Korea.

The Financial Intelligence Unit (FIU), which operates under South Korea's Financial Services Commission, announced the decision on October 13, 2026. The restrictions were approved after reviews conducted by the country's broadcasting and communications regulator on October 6 and 7, as reported by Asia Economy.

The action targets virtual asset service providers that have not registered under South Korea's Act on Reporting and Using Specified Financial Transaction Information, the law that sets operating requirements for cryptocurrency businesses serving the domestic market. The registration obligation took effect in March 2021 through amendments to the act, and running a virtual asset business without registering is a punishable offense. Handling won-denominated trades additionally requires a banking partnership that provides customers with real-name-verified accounts — a condition that has kept most offshore platforms out of the registered pool.

Restrictions Expand From App Stores to Websites

The decision marks a significant widening of South Korea's existing enforcement measures. Until now, authorities had focused on restricting unregistered exchanges through mobile application marketplaces, including Apple's App Store and Google Play. The new measures extend those restrictions to internet websites, closing off the direct browser access that app-store removals did not cover, and regulators can now terminate domestically hosted services or block access to websites operated from overseas.

In addition to KuCoin and MEXC, the affected platforms include XT.com, CoinW, Poloniex, BTCC, BitMart, BingX, and DigiFinex.

South Korean regulations require cryptocurrency service providers targeting domestic customers to meet applicable requirements — including Information Security Management System certification — and to file the necessary registration with the FIU. Foreign exchanges can also fall under these requirements if they actively target Korean customers. Authorities consider factors such as Korean-language websites, marketing campaigns aimed at local users, and support for transactions involving the South Korean won.

The government maintains that early intervention can help prevent financial harm before specific victims are identified or criminal investigations are completed.

Withdrawal Concerns for Existing Customers

The restrictions could create difficulties for South Korean customers who hold cryptocurrency on affected platforms, as users may encounter problems accessing their accounts or withdrawing digital assets through the blocked websites. The FIU acknowledged these potential disruptions and said it would work with the Digital Asset eXchange Alliance (DAXA), the coalition of South Korea's major registered exchanges, to provide guidance on withdrawal methods and procedures.

The action also reinforces South Korea's broader efforts to limit financial crime and consumer protection in the cryptocurrency market. Authorities have warned that unregistered exchanges may lack the regulatory oversight and safeguards available through properly registered operators.

For affected investors, the immediate priority is understanding how the restrictions affect account access and asset withdrawals. The measures target access to unregistered platforms within South Korea rather than establishing a blanket prohibition on cryptocurrency trading. How quickly the blocked domains become unreachable from domestic networks, and how the DAXA-coordinated withdrawal guidance is rolled out, are the practical details to follow as the measures take effect.