South Korean authorities have approved domestic access restrictions or service termination for 27 websites operated by unregistered crypto businesses, including KuCoin, MEXC and BingX, as regulators expand enforcement beyond mobile apps.
The Financial Services Commission (FSC) announced the decision on October 13, following reviews by the Korea Communications Standards Commission (KCSC) on October 6 and 7. The action was requested by the Financial Intelligence Unit (FIU) to restrict websites that were still operating without the required registration.
The move brings exchange websites under restrictions that previously focused on mobile apps. Authorities say they want to act as soon as they identify unregistered operations, rather than wait for users to report losses.
Which Exchanges Are Affected?
The 27 platforms named in the FSC announcement are KuCoin, MEXC, Phemex, XT.com, Bitrue, CoinW, ZoomEX, Poloniex, BTCC, DigiFinex, Pionex, Blofin, Apex Pro, WEEX, BitMart, KCEX, BingX, P2B, NonKYC.io, SUPEREX, Coin Solution, Shinbat Solution, Xgram, Tapbit, Coin My, BigONE, and Ubit.
The restrictions will depend on where each platform operates. Websites using domestic servers may face service termination, while overseas sites will be blocked for users accessing them from South Korea.
Until now, authorities had mainly restricted the installation and updating of apps operated by unregistered providers through Google Play and Apple’s App Store. The latest decision extends those measures to websites.
The decision authorizes access restrictions or service termination; it does not establish that every listed website was already inaccessible at the time of the announcement.
Why Are These Platforms Being Restricted?
South Korea requires crypto businesses to register with the FIU and meet security requirements, including Information Security Management System (ISMS) certification.
The rules also cover foreign exchanges that target South Korean customers. Authorities consider factors such as Korean-language websites, marketing aimed at local users and support for payments in Korean won. Businesses that operate without the required registration can face up to five years in prison or a fine of up to 50 million won.
The FSC has also raised concerns about security and investor protection. Unregistered platforms may expose users to hacking, personal information leaks and fraud. Customers can also face difficulties recovering their funds if an exchange fails to deliver purchased crypto assets or refuses withdrawals.
Trading Fees Can Be Much Higher
Trading costs were another concern highlighted by South Korean authorities.
A joint investigation conducted by the Digital Asset eXchange Alliance (DAXA) and registered crypto operators in June 2026 found that the flagged platforms charged average trading fees ranging from 1.5% to 10%, as per the FSC announcement.
South Korea’s five largest won-based exchanges charged an average of 0.16%, meaning fees at the flagged platforms could be as much as 62 times higher.
Authorities have already taken other steps to limit transactions involving unregistered operators. These include restricting transfers from registered exchanges and preventing crypto purchases through credit cards involving unregistered businesses.
The FIU said 44 unregistered crypto operators had been referred to investigative agencies. That figure covers a broader list of operators and is separate from the 27 websites included in the latest blocking decision.
Wider Changes to South Korea’s Crypto Rules
South Korea is also working on other changes to its digital asset regulations. On October 1, the FSC proposed rules for tokenized stocks, bonds and funds. The rules are scheduled to take effect on February 4, 2027, subject to the required review and approval process.
In August, lawmakers introduced a separate bill that would allow people to report suspected illegal crypto businesses directly to the FIU. The proposal would give the FIU more authority to refer cases to investigative agencies, but it has not yet become law.
These efforts cover different parts of South Korea’s crypto market. The latest website restrictions specifically target exchanges that operate without the required registration.
Authorities to Track Replacement Websites
The restrictions may create problems for existing customers who still hold assets on the affected platforms. Losing access to a website could make it harder for them to withdraw their funds.
The FSC said it would work with DAXA and the relevant operators to provide guidance on withdrawal procedures and help reduce disruption for existing users.
Authorities also plan to monitor replacement websites. If an exchange changes its domain to get around a block, regulators may request another review and seek further restrictions.
South Korea currently has 28 crypto service providers registered with the FIU. Authorities have urged investors to check whether their exchange is registered and to be cautious of promotions promising guaranteed returns, exclusive investment information or global token listings.
The FSC said it would continue working with relevant agencies to identify unregistered operators and prevent them from resuming business through alternative websites.
Also Read: South Korea’s Jeonbuk Bank Rolls Out First Bitcoin-Backed Loans
