South Korea has ordered domestic access restrictions on 27 unregistered cryptocurrency exchange websites, including KuCoin, MEXC and BingX, following regulatory reviews held on October 6 and 7.
Summary
- South Korea has ordered access restrictions on 27 unregistered cryptocurrency websites following two regulatory reviews.
- KuCoin, MEXC, BingX and other overseas exchanges face website restrictions under South Korean financial regulations.
- Regulators have referred 44 unregistered cryptocurrency operators to investigative authorities over suspected unauthorized business activities.
- South Korea requires overseas cryptocurrency exchanges targeting local customers to register with financial intelligence authorities.
- Authorities plan further website blocks and withdrawal guidance for customers affected by the latest restrictions.
The Financial Services Commission (FSC) announced on October 13 that the country’s communications review authority had approved the restrictions at the request of its Financial Intelligence Unit (FIU). The decision extends existing controls on foreign crypto exchange applications to websites operating without the required domestic registration.
The affected platforms include KuCoin, MEXC, Phemex, XT.com, Bitrue, CoinW, Poloniex, BTCC, BingX and BitMart. According to the FIU, the measures cover sites that remain operational despite requests to restrict access to unregistered virtual asset service providers.
South Korea crypto exchange ban extends to websites
Following two rounds of deliberations, the communications review authority approved restrictions covering 27 websites identified by the FIU. Authorities will block domestic access to websites hosted overseas, while sites with domestic servers or operators will face service termination measures.
The latest decision follows South Korea’s restrictions on foreign crypto exchange apps introduced through Google Play and Apple’s App Store. Under the earlier measures, users could no longer install affected applications or receive updates through the platforms’ domestic app stores.
In March 2025, Google Play began restricting 17 unregistered exchange applications following requests from Korean regulators. Apple introduced similar controls in April, targeting platforms that had failed to complete local registration requirements. The government has since continued reviewing overseas operators serving Korean customers without authorization.
The FIU said authorities can now request website restrictions once unregistered business activities are identified, without waiting for completed criminal investigations or confirmed customer losses. The regulator described unregistered virtual asset operations as violations of the Specific Financial Information Act and said early restrictions were intended to prevent consumer harm.
According to the commission, the authorities reached the decision after discussions on how to limit access to operators conducting unauthorized crypto business activities. The process allows communications regulators to examine newly identified websites before approving restrictions.
Unregistered crypto exchanges face penalties and investigations
South Korea requires cryptocurrency businesses serving local customers to register with the FIU and meet requirements that include Information Security Management System (ISMS) certification. Foreign operators fall under the same rules when their activities target residents of South Korea.
Regulators assess whether overseas platforms maintain Korean-language websites, promote services to Korean customers or support payments in Korean won. According to the FSC, such activities can establish that an overseas business is operating within the domestic market.
Operating without the required registration carries a possible prison sentence of up to five years or a fine of up to 50 million won. Authorities have referred 44 unregistered virtual asset operators to investigative agencies, although the commission has not stated that all those referrals have resulted in criminal charges or convictions.
The FIU has instructed registered crypto businesses to restrict virtual asset transfers involving identified unregistered operators. Licensed firms that violate applicable transaction restrictions can face administrative sanctions and fines of up to 100 million won per violation.
Credit card purchases involving unregistered virtual asset providers face separate restrictions. The government introduced those payment controls through amendments implemented in May 2024, forming part of its existing enforcement framework against unauthorized crypto transactions.
South Korean regulators have previously taken enforcement action against licensed exchanges for transactions involving unregistered overseas platforms. In April 2026, the FIU disclosed that Coinone had processed 10,113 virtual asset transfers involving 16 unregistered foreign providers, following an inspection that identified multiple compliance violations.
Regulators warn of high fees and customer asset risks
The FIU has raised concerns about customer protection at unregistered cryptocurrency businesses. In its October 13 statement, the commission warned that such operators are not subject to the same domestic supervision and safeguards required of registered providers.
According to the regulator, potential risks include exposure of personal information, hacking, money laundering and customers paying for cryptocurrencies they never receive. Authorities cautioned that recovering losses from unregistered operators can be difficult when businesses fall outside established domestic protection arrangements.
A joint investigation conducted by the Digital Asset Exchange Association (DAXA) and registered operators in June 2026 found trading fees ranging from 1.5% to 10% among the businesses examined. The FIU compared those figures with an average fee of 0.16% across South Korea’s five major won-based exchanges.
The investigation found that some operators charged fees reaching approximately 62 times the domestic exchange average. The commission presented the figures as findings from the investigated businesses, not as fee data for every platform covered by the October website restrictions.
During an earlier enforcement review, the FSC reported that the joint investigation had identified 12 operators, including eight unauthorized over-the-counter trading businesses and four overseas exchanges conducting activities targeting Korean customers. The cases were referred to police for investigation.
FIU plans more website blocks and withdrawal guidance
The FIU plans to monitor alternative domains that unregistered exchanges may use to continue serving Korean customers. Where authorities identify replacement websites or newly detected operators, the unit intends to request further reviews and access restrictions.
For customers holding funds on affected platforms, the regulator said it would coordinate with DAXA and relevant businesses to provide withdrawal instructions and procedural assistance. The October announcement did not establish a universal withdrawal deadline or confirm that every affected operator had agreed to assist customers.
Currently, 28 virtual asset service providers are registered with the FIU. The commission has advised customers to verify an operator’s registration status before depositing funds and to withdraw assets from businesses identified as unregistered.
The FIU warned customers to be cautious of promotions promising “high returns,” “principal guarantees,” access to “non-public information” or “global listings.” The regulator said such claims could indicate fraudulent activity and advised users against providing private keys, login credentials or identity documents to unregistered operators.
Authorities have invited reports of suspected illegal crypto businesses through the FIU, DAXA and police. The commission said referral-based promotions involving unauthorized operators could expose participants to criminal liability if their conduct amounts to assisting illegal business operations.
