South Korea has approved restrictions on 27 unregistered cryptocurrency websites, including KuCoin, MEXC and BingX, following regulatory reviews on October 6 and 7. The Financial Intelligence Unit (FIU) requested the action to curb unauthorized crypto services targeting local customers under South Korean financial regulations.
The Financial Services Commission (FSC) announced the decision on October 13 after the Korea Communications Standards Commission approved the restrictions. Authorities will block overseas websites and terminate services operated through domestic servers. The move expands an earlier crackdown on unregistered crypto exchange applications across South Korea.
The restrictions cover several major platforms, including Phemex, XT.com, Bitrue, CoinW, Poloniex, BTCC and BitMart. South Korean law requires virtual asset service providers targeting local customers to register with the FIU and meet applicable compliance requirements.
Authorities assess whether overseas platforms offer Korean language services, promote products to local residents or support payments in Korean won. These activities can indicate that an exchange serves South Korea without the required registration. Regulators can seek website restrictions without waiting for criminal investigations or confirmed customer losses.
The latest decision builds on earlier measures against unregistered crypto exchange applications. Google Play began restricting 17 exchange apps in March 2025, while Apple introduced similar controls in April. Those measures limited app downloads, installations and updates through South Korean stores.
The FIU has also referred 44 unregistered virtual asset operators to investigative agencies. Licensed crypto businesses must restrict transfers involving identified unauthorized operators, while violations can trigger administrative penalties. Operating without registration carries a possible prison sentence of up to five years or a fine of 50 million won.
South Korean regulators warn that unregistered exchanges may expose customers to hacking, personal data leaks and failed withdrawals. Recovering funds can prove difficult when overseas operators fall outside domestic supervision and consumer protection arrangements.
The FIU plans to monitor replacement domains and request additional website blocks when necessary. Authorities also intend to coordinate withdrawal guidance for customers affected by the restrictions. The commission advises users to verify exchange registration before depositing funds and avoid promises of guaranteed returns.
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