South Korea has escalated its campaign against offshore cryptocurrency exchanges that serve local users without a license, ordering domestic access blocks on 27 websites run by unregistered overseas operators — including several of the industry's best-known trading venues.

In an announcement on October 13, the Financial Intelligence Unit (FIU) said the Korea Communications Standards Commission has ordered access restrictions on the 27 sites. Crypto exchanges KuCoin, MEXC and BingX are among the platforms named, according to local outlet Etoday.

Regulators Extend Enforcement From App Stores to Websites

The Financial Services Commission confirmed the restrictions in an official statement on Tuesday. The decision covered 27 active websites that authorities had previously identified for enforcement.

Overseas-hosted websites face domestic access restrictions, while domestically operated services face termination measures. The distinction depends on the location of servers or operators.

The latest step expands a program of enforcement that had previously focused on mobile distribution. South Korean regulators worked with Google and Apple to restrict unregistered exchange applications, preventing new installations and updates through domestic app stores. Users could, however, still reach the affected exchanges through their websites, and the new order brings those online services within scope, closing off direct web access from South Korea. With app distribution already restricted, the website order closes the remaining direct channel into the domestic market.

The FIU also outlined a faster response to suspected unregistered operations. Authorities can now pursue access restrictions without waiting for completed investigations or confirmed customer losses. Regulatory review remains part of the process, according to the agency, which argued that operating without mandatory registration already constitutes a violation of South Korean law.

KuCoin, MEXC and BingX Among Platforms Named

Reports identified ten of the 27 platforms: KuCoin, MEXC, Phemex, XT.com, Bitrue, CoinW, Poloniex, BTCC, BingX and BitMart. Several of these exchanges have large global user bases and have courted Asian traders for years.

Under Korean law, a foreign operator falls under local rules once it targets Korean customers. Running a Korean-language website, advertising to Koreans or accepting won payments all count as targeting. To operate legally, a platform must hold an Information Security Management System (ISMS) certification and report to the FIU. Skipping that step can bring up to five years in prison or a fine of up to 50 million won.

KuCoin has faced similar pressure in other jurisdictions. The Philippines ordered a block on Binance in March 2024 and later moved against more unregistered platforms, with KuCoin and MEXC among those reported blocked by late 2025. Nigeria restricted access to several exchanges, including KuCoin, during its 2024 foreign exchange crackdown.

Part of a Broader Regulatory Push

For observers of Korean crypto policy, the move fits a clear pattern. The FIU has referred 44 unregistered virtual asset service providers to investigative agencies. It also bars registered Korean platforms from sending virtual assets to these firms and has blocked credit card purchases of crypto from them.

Consumer protection sits behind the push. Unregistered firms fall outside the Consumer Protection Act and the Act on Reporting and Use of Specific Financial Information, meaning their security and asset safeguards receive no official oversight.

A joint industry investigation in June found that average trading fees at these firms ranged from 1.5% to 10% — up to 62 times higher than the 0.16% average at Korea's top five won-based exchanges.

Korea currently has 28 virtual asset service providers registered with the FIU. The blocked list nearly matches that registered roster in size, an indication of the scale of the unregistered segment officials are targeting. Officials want local traders on those platforms, where rules on custody, security checks and reporting apply.

Regulators elsewhere are tightening oversight in their own ways. From August 23, 2026, EU sanctions measures banned transactions with listed crypto service providers such as HTX, EXMO and BitPapa, though that action rests on sanctions rules rather than licensing requirements. Across these cases, regulators have leaned on access restrictions — whether grounded in licensing or sanctions rules — to reach local users.

What the Restrictions Mean for Korean Users

The most immediate effect is practical. Korean users holding funds on any of the 27 sites will find the web interface blocked from domestic connections, cutting off access from inside the country. Anyone still holding assets there has reason to move them out while withdrawal routes remain open.

The FIU said it will support users through that process. If people run into trouble withdrawing assets from blocked platforms, the Digital Asset Exchange Association (DAXA) will share guidance on withdrawal methods and procedures.

Authorities also plan to track mirror sites that switch domains to evade the block, and they will request further restrictions as those sites appear. The scope of the block can therefore expand over time as new domains are identified.

The FIU's advice to traders was direct: be wary of advertisements promising high returns, guaranteed principal, non-public information or global listings.

This article is for informational purposes only and does not constitute legal, financial or investment advice.

Source: Market Periodical