TL;DR
South Korea approved blocks on 27 unregistered crypto websites, including KuCoin, MEXC, Phemex, XT.com and Bitrue, after reviews on October 6 and 7.
Unregistered virtual asset businesses serving Korean users can face five years in prison or a 50 million won fine under the country’s reporting law.
Authorities acknowledge the blocks may complicate withdrawals, with DAXA providing guidance, while the action targets South Korean access rather than shutting exchanges globally.
South Korea has approved domestic access blocks on 27 websites run by unregistered virtual asset service providers, including KuCoin, MEXC, Phemex, XT.com and Bitrue. In an official October 13 announcement , the Financial Intelligence Unit said the Korea Media and Communications Standards Commission approved the measures after reviews on October 6 and 7. The action expands enforcement from mobile apps to websites, tightening access for overseas crypto exchanges that serve Korean users without completing local registration under the country’s VASP framework. The move adds another compliance layer around crypto exchanges .
South Korea Extends Crypto Enforcement From Apps to Websites
Under South Korea’s financial transaction reporting law, virtual asset businesses must satisfy requirements including Information Security Management System certification and file with the FIU before legally serving domestic users. The rules also apply to overseas operators targeting Koreans, with authorities considering Korean-language services, local marketing and support for won payments. Operating without the required filing can trigger criminal penalties of up to five years in prison or a fine of 50 million won. The website action follows earlier restrictions on overseas exchange apps , extending the same enforcement logic beyond Apple and Google app stores.
The FIU said authorities can terminate service when servers or operators are based domestically, while overseas sites can be blocked from access inside South Korea. It has also told registered providers to restrict transfers involving unregistered businesses and has referred 44 operators to investigative authorities. The latest decision is designed to let regulators restrict access as soon as unregistered activity is identified, without waiting for confirmed user losses or a completed criminal case. That approach fits South Korea’s broader AML tightening across crypto transfers , where compliance obligations increasingly extend across domestic and foreign counterparties and wallets.
The measures may create friction for users who still hold assets on affected platforms. Authorities acknowledged that website blocking could complicate withdrawals and said guidance would be provided through the Digital Asset eXchange Alliance, with cooperation from operators. The FIU currently lists 28 properly registered virtual asset businesses and says firms outside that framework cannot legally conduct virtual asset business targeting Korean customers. For KuCoin, MEXC and the other named platforms, the restriction is a South Korean market-access measure rather than a global shutdown of their exchanges. The enforcement arrives as registered Korean exchange activity has already weakened sharply throughout 2026.
