South Korea is expanding its campaign against unauthorized cryptocurrency trading platforms by blocking the websites of 27 unregistered exchanges, including KuCoin, BitMart and MEXC. The action follows earlier restrictions on their mobile applications and is intended to limit access for domestic investors before they suffer losses or face difficulties recovering funds.
According to CoinDesk, the Financial Intelligence Unit (FIU) said the Korea Communications Standards Commission approved the website restrictions after reviews held on October 6 and 7. Websites operated from outside South Korea will be blocked, while platforms operating domestically may have their services terminated.
The move gives regulators another way to restrict access to exchanges that have not completed the country’s registration process. It also marks a broader application of measures first used against the platforms’ mobile apps last year.
Registration rules tighten access
Foreign cryptocurrency exchanges must register with South Korea’s FIU if they want to serve customers in the country legally. They must also meet local security and anti-money-laundering requirements.
The FIU did not announce how long the restrictions would remain in place and did not set a deadline for the affected exchanges to register. However, the regulator said authorities can seek website blocks once unregistered activity is identified, without waiting for a court ruling or proof that customers have already lost money.
This distinction is important for investors using overseas platforms. A website may be accessible from South Korea even when the operator has not obtained the authorization required to serve local customers. Blocking the site is intended to close that access route, just as earlier app restrictions limited access through Google and Apple’s mobile ecosystems.
The regulator said it has referred 44 unregistered operators to investigators and will pursue additional blocks if affected websites return under different internet addresses. South Korea currently has 28 virtual asset service providers registered with the FIU.
KuCoin said it respects applicable laws and regulations in the jurisdictions where it operates and is continuing to strengthen its compliance framework as regulatory requirements change. The exchange also said user assets remain safe and secure and that it would provide further information through its official channels. BitMart, Phemex and MEXC did not immediately respond to CoinDesk’s request for comment.
Warning for customers of unauthorized platforms
The FIU warned that customers using unauthorized exchanges could have difficulty recovering their funds. Access restrictions may make it harder for users to log in, trade or withdraw assets, particularly if a platform does not provide an effective process for customers in the affected market.
Regulators urged investors to check whether an exchange is registered before using it and to withdraw assets held with unauthorized operators. The FIU said it would work with the Digital Asset eXchange Alliance, known as DAXA, to help affected customers withdraw funds where the restrictions create access problems.
South Korea’s broader digital-asset rules are still developing. A proposed Digital Asset Basic Law, which has not yet taken effect, would establish a legal framework covering areas including issuance, trading, custody and supervision. In April, the country’s Financial Services Commission and Financial Supervisory Service announced additional rules that removed exchanges’ discretion to allow users to bypass holding periods.
The latest website blocks therefore form part of a wider effort to bring crypto activity within a regulated structure. The immediate focus is on platforms that serve South Korean customers without FIU registration, rather than on a general ban on cryptocurrency trading.
Capital flows and current market picture
The restrictions arrive as South Korean investors have been moving substantial amounts of cryptocurrency overseas amid tighter domestic rules. An estimate cited in the source material put the amount leaving domestic exchanges in 2025 at $110 billion. The figure highlights the scale of cross-border activity that regulators are seeking to monitor, although the website action specifically targets unregistered operators.
Moneyiar market data at 20:28 on October 13, 2026, showed mixed performance among the two tracked assets:
- RedStone (RED) was trading at $0.154696234, down 1.39% over 24 hours and 4.76% over seven days.
- Ore (ORE) was trading at $122.259045128, up 2.26% over 24 hours and 4.28% over seven days.
The market figures describe the performance of these individual assets and do not indicate the direct effect of South Korea’s restrictions on the wider cryptocurrency market.
