South Korea expands crypto crackdown with 27 exchange websites blocked

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South Korea crypto crackdown expands

Highlights

South Korea's Financial Intelligence Unit approved blocking domestic access to 27 unregistered crypto exchange websites, including KuCoin, MEXC, and BitMart, following October 6–7 reviews.
The new enforcement targets platforms actively serving Korean users without anti-money laundering registration, applying to both overseas-operated and domestically hosted websites.
The regulator acknowledged potential withdrawal difficulties for users and plans to coordinate support via the Digital Asset eXchange Alliance (DAXA) after expanding restrictions that began with mobile apps earlier in April 2025.

Website enforcement broadens compliance push

As reported by Cointelegraph, citing South Korea’s Financial Intelligence Unit, authorities have approved measures to block domestic access to 27 websites run by unregistered crypto exchanges and other virtual asset service providers. The FIU said on Tuesday the decision follows reviews by the Korea Media and Communications Standards Commission on Oct. 6 and 7.

The list includes KuCoin, MEXC, Phemex, Bitrue, CoinW, BTCC, BitMart, BingX and DigiFinex. The block applies to platforms that have not registered under the Act on Reporting and Using Specified Financial Transaction Information, the country’s anti-money laundering framework.

The FIU said blocking measures against illegal virtual asset operators now extend to internet websites after earlier action against apps on Apple and Google. The measures include ending domestically hosted services or restricting access to websites operated overseas.

Impact on users and market access

The regulator said it assesses whether overseas operators are targeting Korean customers by examining whether they offer Korean-language services, market to South Korean users or support transactions in won. That standard gives authorities a basis to identify foreign platforms considered active in the domestic market.

The FIU acknowledged the website blocks could make withdrawals more difficult for existing users. It said it plans to provide withdrawal guidance and support through the Digital Asset eXchange Alliance, or DAXA, with cooperation from the operators.

The move follows earlier restrictions on mobile distribution channels. In April 2025, South Korea blocked downloads and updates for 14 unregistered crypto exchange apps on Apple’s App Store after restrictions on 17 apps through Google Play, tightening pressure on offshore operators serving local investors without registration.

Our previous coverage of the Altura dispute detailed how a crypto yield platform halted withdrawals after a rapid redemption wave and later claimed its bank account was frozen, leaving significant customer funds inaccessible. The piece outlined escalating legal action and urged affected users to file formal fraud reports, underscoring how quickly high-yield crypto products can unravel when liquidity and access to reserves are disrupted.

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