South Korea has ordered domestic access restrictions on 27 websites operated by unregistered cryptocurrency service providers, including KuCoin, MEXC and BingX, as authorities intensify enforcement against overseas exchanges serving local investors without regulatory registration.The Financial Intelligence Unit (FIU), operating under the Financial Services Commission, announced the measures on October 13, 2026, following regulatory reviews conducted on October 6 and 7.The Korea Media and Communications Standards Commission approved the restrictions at the FIU’s request, extending existing enforcement measures beyond cryptocurrency applications distributed through Apple and Google. Other affected platforms include Phemex, XT.com, Bitrue, CoinW, BTCC, BitMart and DigiFinex.The regulator said the restrictions target providers operating without the registration required under South Korea’s financial transaction reporting legislation. Authorities have also referred 44 unregistered cryptocurrency operators to investigative agencies as part of broader enforcement efforts.The action does not constitute a nationwide prohibition on cryptocurrency trading. Instead, it targets services offered to South Korean customers by providers that have not completed the country’s registration requirements.
Website Blocking Expands Earlier App Restrictions
South Korea requires virtual-asset service providers to register with the FIU and meet compliance requirements, including Information Security Management System certification.The rules apply to domestic operators and overseas businesses targeting South Korean customers. In March 2025, authorities restricted access to Google Play applications operated by 17 unregistered overseas exchanges.Additional restrictions followed through Apple’s App Store, limiting access to platforms that had not obtained the necessary registration.However, customers could still potentially reach affected exchanges through conventional websites. The latest decision addresses that gap by authorizing website-level restrictions. Under the framework, authorities may block access to overseas websites or order termination of services when relevant infrastructure or operators are located domestically.The FIU said regulators no longer need to wait for confirmed customer losses or the conclusion of criminal proceedings before seeking restrictions against identified unregistered businesses.Instead, suspected unauthorized operations can trigger a regulatory review and access-blocking decision.This approach is intended to reduce consumer exposure to platforms operating outside South Korea’s anti-money-laundering and investor-protection requirements.
Regulators Acknowledge Customer Withdrawal Risks
The website restrictions introduce practical complications for customers who already hold cryptocurrency on affected exchanges.Blocking access could make it harder for users to manage accounts, close positions or withdraw existing balances.South Korean authorities acknowledged that possibility and said they would coordinate with the Digital Asset Exchange Alliance, known as DAXA, to provide guidance on withdrawal procedures. The FIU also plans to monitor whether affected providers establish replacement websites or alternative access channels.Additional blocking requests may follow if regulators identify attempts to continue unauthorized services. The enforcement campaign comes as South Korea strengthens supervision of its domestic cryptocurrency industry.The Virtual Asset User Protection Act, implemented in July 2024, established requirements concerning customer asset protection, custody and unfair trading practices. Separately, the FIU reported that South Korea had 26 registered virtual-asset service providers in the first half of 2026, comprising 17 exchange operators and nine custody or wallet businesses.Those figures illustrate the distinction between registered domestic services and overseas platforms operating without local authorization. The latest restrictions could encourage trading activity to migrate toward compliant providers, although their effect on market volumes remains uncertain.They also raise operational questions about customers’ ability to recover assets from platforms whose websites become inaccessible.The October 13 announcement confirms regulatory approval of restrictions on 27 websites, rather than the closure of the exchanges themselves.For overseas cryptocurrency businesses, the decision reinforces South Korea’s position that serving local customers requires compliance with domestic registration rules, regardless of where an exchange is headquartered.