South Korea has approved measures to block access to 27 websites operated by crypto asset service providers that failed to meet registration requirements. The decision, which includes KuCoin and MEXC, extends restrictions on mobile applications to websites. The Korea Financial Intelligence Unit (FIU) announced the development on October 13.
According to the FIU, which operates under the Financial Services Commission (FSC), the relevant commission approved the decision following two reviews on October 6 and 7. The measures involve terminating services whose servers or operators are located domestically and blocking access from South Korea to websites based overseas.
Authorities Will Not Wait for User Losses Before Blocking Access
The FIU stated that conducting unregistered crypto business is itself a violation of the law. Authorities therefore aim to block access following a review of identified activities, without waiting for confirmed user losses or the outcome of an investigation.
The agency will also monitor attempts by blocked operators to continue their activities under different domain names and request additional reviews of new websites. According to the announcement, the FIU has referred a total of 44 unregistered operators to investigative authorities.
Scrutiny of KuCoin and MEXC Dates Back to 2022
South Korea has been scrutinizing these platforms for several years. In an official announcement on August 18, 2022, the FIU said it had referred 16 foreign crypto service providers, including KuCoin and MEXC, to investigative authorities over suspected violations of reporting requirements.
The list at the time also included platforms such as Phemex, XT.com, Bitrue, CoinW, Poloniex, BTCC, DigiFinex and Pionex. The agency said these businesses were operating in the country through Korean-language websites and campaigns targeting local customers.
In the same announcement, the FIU noted that it had informed foreign operators of their registration obligations in July 2021. It said unregistered activities had nevertheless continued and requested that the relevant authorities block access to their websites.
The measures announced in 2022 also included restrictions on business relationships between registered domestic crypto service providers and these operators. Authorities also planned to review services enabling crypto purchases by credit card and notify financial intelligence units in the relevant foreign jurisdictions.
Website Blocks Follow Google and Apple Restrictions
Measures targeting mobile applications took effect in 2025. According to the FSC’s announcement on April 14, 2025, Google Play began restricting the apps of 17 unregistered foreign crypto platforms on March 25.
Apple introduced similar measures for 14 apps, including KuCoin and MEXC, starting on April 11. Under those decisions, users in South Korea could no longer download the affected apps, while existing users could no longer receive updates.
The same announcement explained how authorities assessed whether foreign companies were targeting the South Korean market. Officials considered Korean-language services, marketing activities aimed at South Korean customers and support for payments in won.
The FIU warned that unregistered operators remained outside local supervisory and user protection frameworks. Citing risks involving personal data leaks, cyberattacks and the protection of customer assets, the agency urged investors to check platforms’ registration status. It also published a list of registered operators on its website.
Withdrawal Support Is Being Prepared
The new website restrictions could also affect existing users’ access to their assets. Acknowledging potential withdrawal difficulties, the FIU said it would provide guidance on withdrawal methods and procedures through the Digital Asset eXchange Alliance (DAXA), with cooperation from the operators.
Authorities aim to reduce potential withdrawal problems for existing users as they restrict access to unregistered platforms.
