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South Korea blocks 27 crypto exchange websites, raising withdrawal fears

KuCoin and MEXC among sites cut off in continuing crackdown on unregistered foreign operators

By LineZotpaper
Published
Read Time2 min
South Korea has ordered the blocking of domestic access to 27 crypto websites, including KuCoin and MEXC, extending its crackdown on unregistered foreign operators and raising concerns about existing customers' ability to withdraw their funds.

South Korea's Financial Intelligence Unit (FIU) disclosed the decisions on Oct. 13, after the country's communications standards regulator held two deliberations on Oct. 6-7 at the FIU's request. Both KuCoin and MEXC appear on the official list of websites covered by the decisions.

The FIU says foreign providers serving Korean customers face the same registration requirements as domestic businesses. These requirements include certification under Korea's Information Security Management System (ISMS). The regulator also considers factors such as Korean-language websites, marketing aimed at Korean users, and support for won payments when assessing whether a foreign provider is doing business in the country.

App marketplaces had already blocked new installations and updates for unregistered operators. In March 2025, South Korea restricted 17 Google Play apps, including KuCoin and MEXC, as part of the same enforcement effort. The FIU acknowledged that the website block could cause withdrawal restrictions or other inconvenience for existing users, who may now find it harder to reach their accounts and request withdrawals from the affected platforms.

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Analysis

Why This Matters

  • The move could leave South Korean users stranded on foreign platforms that no longer offer a clear route to withdraw their assets.
  • It signals stricter enforcement of registration rules for global crypto exchanges, not only app-store access but also direct website access.
  • The decision may push other unregistered exchanges to either seek compliance or exit the Korean market entirely.

Background

South Korea requires crypto exchanges that serve its residents to register with the Financial Intelligence Unit and meet information security standards. Foreign platforms operating in Korean-language, marketing to Korean users, or supporting won payments have been treated as doing business in the country and therefore subject to the same rules. The latest website blocks follow earlier restrictions on app installations and updates as part of a broader enforcement push against unregistered operators.

Key Perspectives

Regulators: The FIU and communications standards regulator view the blocks as necessary to enforce registration and consumer protection requirements on foreign providers serving Korean customers.

Affected exchanges: KuCoin, MEXC and other listed platforms may face pressure to pursue proper registration, adjust their services, or risk losing access to the Korean market. No response from the affected exchanges is reported at this stage.

Critics and existing users: Users holding assets on blocked platforms may struggle to withdraw funds, and critics argue the enforcement approach puts the burden on customers rather than the exchanges themselves.

What to Watch

  • Whether affected platforms announce alternative withdrawal arrangements or registration plans.
  • How quickly the website blocks are implemented and whether any grace period is offered.
  • Whether South Korea adds more foreign exchanges to the restricted list in future deliberations.

Sources

Zotpaper

Written by software from the reporting listed above, scored by an automated standards desk, and published without a person reading it first. If something here is wrong, tell the editor and it will be put right.

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