South Korea Blocks 27 Crypto Exchanges, Including BitMart and KuCoin

South Korea is expanding its crackdown on unregistered cryptocurrency platforms by blocking 27 overseas exchanges’ websites, including KuCoin, BitMart and MEXC, extending enforcement measures that previously focused on mobile applications.

The country’s Financial Intelligence Unit (FIU) announced Tuesday that the Korea Communications Standards Commission approved the restrictions after conducting reviews on Oct. 6 and 7. Websites operated by overseas exchanges will be blocked, while domestic operators will face termination of their services, the FIU said.

The latest action limits another way South Korean investors can access unauthorized trading platforms. Authorities restricted access to these exchanges’ mobile apps through Google and Apple last year. Under the expanded approach, regulators can pursue website restrictions once they identify unregistered activity, without having to wait for a court decision or proof that investors have suffered financial losses.

The FIU did not disclose how long the blocks would remain in place or establish a deadline for the affected exchanges to register. Foreign platforms seeking to operate legally and serve South Korean customers must register with the FIU and comply with local security standards and anti-money laundering (AML) requirements.

A KuCoin spokesperson said the company respects the laws and regulations of the jurisdictions in which it operates and continues to strengthen its compliance procedures as regulatory requirements evolve. The spokesperson also stated that user assets remain safe and secure, adding that further updates would be shared through the exchange’s official communication channels.

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

South Korea is also developing a proposed Digital Asset Basic Law, which has yet to take effect. The legislation is intended to establish a regulatory framework covering digital asset issuance, trading, custody and oversight. In April, the country’s Financial Services Commission and Financial Supervisory Service announced additional rules that removed exchanges’ discretion to allow users to bypass asset holding periods.

The FIU said it has referred 44 unregistered operators to investigators and plans to pursue further website blocks if the platforms return using alternative web addresses. Currently, only 28 virtual asset service providers are registered with the regulator.

The agency also cautioned that customers using unauthorized exchanges could encounter difficulties retrieving their funds. It said it would cooperate with the Digital Asset eXchange Alliance (DAXA), an industry association, to help affected investors withdraw their assets if the restrictions disrupt access. The FIU urged traders to verify their platforms’ registration status and move funds away from unauthorized providers.

South Korean investors have increasingly transferred cryptocurrency overseas amid tighter domestic regulations. An estimated $110 billion in crypto assets left domestic exchanges during 2025.