South Korea is cutting off access to the web portals of 27 uncertified cryptocurrency trading venues, such as KuCoin, BitMart, and MEXC, thereby broadening its enforcement actions against foreign trading destinations past their mobile applications.
The nation’s Financial Intelligence Unit (FIU) stated on Tuesday that the Korea Communications Standards Commission endorsed the limitations following evaluations on October 6 and 7. Portals managed from abroad will be rendered inaccessible, whereas platforms functioning locally encounter service termination, according to the FIU.
This action shuts down another pathway enabling South Korean traders to reach unlicensed platforms after authorities restricted availability to their smartphone applications on Apple and Google last year. Regulators are now empowered to request website blockades immediately upon uncovering unlicensed operations, bypassing the need for judicial verdicts or proof that users have incurred financial harm.
The FIU refrained from detailing the duration of these measures or establishing a compliance deadline for the platforms. Nevertheless, any platform desiring to function lawfully within the nation and cater to South Korean participants must complete registration with the FIU alongside fulfilling local security and anti-money laundering mandates.
A representative for KuCoin stated that they abide by relevant laws and policies across all territories while continually enhancing their compliance infrastructure to address shifting regulatory expectations.
The representative added that user holdings stay protected and secure, and any additional developments will be shared via official communication channels.
BitMart, MEXC, and Phemex did not instantly reply to inquiries for statements sent by CoinDesk.
South Korea’s pending Digital Asset Basic Law, which remains unlegislated thus far, aims to establish foundations for a regulatory structure covering digital currencies, spanning creation, exchange operations, safekeeping, and oversight. The nation’s Financial Supervisory Service and Financial Services Commission introduced updated regulations in April, eliminating the autonomy platforms previously held allowing participants to bypass mandatory holding durations.
The FIU reported that it has reported 44 uncertified service providers to law enforcement and intends to pursue additional bans on domains that reappear using alternative URLs. At present, a mere 28 virtual asset service providers maintain official registration with the oversight body.
Furthermore, the financial regulator cautioned that participants utilizing unlicensed venues might encounter challenges retrieving their balances. The FIU indicated it will collaborate with the Digital Asset eXchange Alliance (DAXA), a trade group, to assist impacted participants in withdrawing their balances if connectivity barriers arise. Additionally, the regulator advised traders to verify whether their chosen platform holds proper registration and to remove their funds from unregistered entities.
South Korean traders have steadily transferred substantial crypto sums abroad over recent months owing to rigorous regulations, with approximately $110 billion departing local platforms throughout 2025.
Originally published at https://www.coindesk.com/policy/2026/10/13/south-korea-blocks-27-crypto-exchanges-including-bitmart-and-kucoin.
