HomeCoinsBitcoinSouth Korea locks out crypto users as 27 exchange sites go dark

South Korea locks out crypto users as 27 exchange sites go dark

South Korea has ordered the blocking of domestic access to 27 crypto websites, including KuCoin and MEXC, extending its crackdown on unregistered operators and raising concerns about existing customers’ ability to withdraw.

The country’s Financial Intelligence Unit (FIU) disclosed the decisions on Oct. 13. South Korea’s communications standards regulator made them following two deliberations on Oct. 6-7, at FIU’s request.

Both exchanges appear in the official list of websites covered by the decisions. FIU says foreign providers serving Korean customers face the same registration requirements as domestic businesses.

The requirements include certification under Korea’s Information Security Management System (ISMS), and they consider Korean-language websites, marketing aimed at Koreans, and support for won payments when assessing whether a foreign provider is doing business in the country.

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App marketplaces had already blocked new installations and updates for unregistered operators, FIU said.

South Korea had already restricted 17 Google Play apps, including KuCoin and MEXC, on March 26, 2025. At that point, FIU was pursuing website restrictions alongside further app-market action.

For users who already hold assets on a platform, a website block can interfere with reaching an account and requesting a withdrawal. FIU acknowledged that blocking could cause withdrawal restrictions or other inconvenience for existing users.

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South Korea’s FIU says 27 unregistered crypto websites face domestic blocking, with withdrawal procedures still unspecified.

Withdrawal support depends on operators’ cooperation

FIU plans to provide detailed withdrawal methods and procedures through DAXA, a Korean exchange industry group, with the operators’ cooperation. That support is intended to address inconvenience caused by website blocking, but the announcement still leaves its delivery as a future commitment.

The release gives no service-by-service implementation timetable or confirmed withdrawal route for KuCoin or MEXC customers. Users with balances on those platforms still need to know how to reach their accounts and complete transfers when domestic website access is restricted.

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FIU urged users to withdraw their crypto assets and deposits immediately after identifying an unregistered operator. It also warned against giving those operators private keys, login information, or copies of identification.

FIU said that authorities intend to pursue blocking after detecting unregistered business activity without waiting for confirmed user losses or a judicial result.

They also plan to monitor substitute website addresses and seek further blocking reviews if operators continue business under changed addresses.

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