South Korea Moves Against 27 Crypto Exchanges as BitMart and KuCoin Face Blocks

South Korea has expanded its crackdown on unauthorized cryptocurrency platforms by blocking 27 exchanges’ websites, including KuCoin, BitMart and MEXC. The move extends restrictions previously imposed on mobile apps, making it more difficult for local investors to access unregistered foreign exchanges.

The country’s Financial Intelligence Unit (FIU) announced Tuesday that the Korea Communications Standards Commission had approved the blocks following reviews on Oct. 6 and 7. The regulator said overseas-operated websites would be made inaccessible, while domestic operators would face the termination of their services.

The latest restrictions eliminate another way for South Korean users to reach unregistered trading platforms. Last year, authorities restricted access to the exchanges’ mobile apps through Google and Apple. Regulators can now pursue website blocks once they identify unregistered activity, without waiting for a court decision or evidence that investors have lost money.

The FIU has not disclosed how long the restrictions will remain in effect or announced a deadline for the affected exchanges to register. Platforms that want to legally serve South Korean customers must register with the FIU and comply with national security and anti-money laundering (AML) requirements.

A KuCoin spokesperson said the exchange respects the applicable laws and regulations in the countries where it operates and continues to strengthen its compliance framework as regulatory requirements evolve. The spokesperson added that customer assets remain safe and that further updates would be provided through the company’s official channels.

BitMart, Phemex and MEXC did not immediately respond to CoinDesk’s requests for comment.

Meanwhile, South Korea is developing a proposed Digital Asset Basic Law, which has not yet come into force. The legislation is intended to establish a regulatory framework for digital asset issuance, trading, custody and oversight. In April, the Financial Services Commission and Financial Supervisory Service introduced additional rules that removed exchanges’ discretion to let users bypass required asset holding periods.

The FIU said it has referred 44 unregistered operators to investigators and will seek additional website blocks if the platforms return using different domain names. Only 28 virtual asset service providers are currently registered with the agency.

The regulator also warned that customers using unauthorized exchanges may struggle to retrieve their funds. It plans to work with the Digital Asset eXchange Alliance (DAXA), an industry association, to help affected investors withdraw assets if the restrictions disrupt account access. Investors were urged to check whether their exchange is registered and move funds away from unauthorized platforms.

South Korea’s tighter regulatory environment has coincided with significant cryptocurrency outflows from domestic exchanges. An estimated $110 billion in crypto assets moved overseas from South Korean exchanges in 2025.