- South Korea blocks 27 unregistered crypto sites, including BingX and MEXC.
- Web blocks reach existing account holders, not just new app installs and updates.
- FIU says site blocks may complicate withdrawals, and promises guidance via DAXA.
South Korea has cut domestic access to 27 crypto exchange websites that never registered with its financial intelligence regulator. MEXC, KuCoin, Phemex, XT.com and Bitrue are on the list, along with CoinW, Poloniex, BTCC, BitMart, BingX and DigiFinex.
The Financial Intelligence Unit (FIU) announced the step on 13 October, after the Korea Media and Communications Standards Commission reviewed the sites on 6 and 7 October.
Why Web Blocks Go Further Than App Bans
Seoul had already pulled these exchanges’ apps from the stores. Earlier reports said Google Play restricted 17 and Apple’s App Store restricted 14 in April 2025. Those bans stop new installs and updates. A web block also reaches people who already hold accounts and trade through a browser.
How the Blocks Work
- Sites hosted abroad will be blocked from domestic access.
- Services running on domestic servers may be shut down.
- The FIU plans to watch for alternative domains that exchanges might use to get around the blocks.
Test for Foreign Exchanges
An overseas platform falls under the law if it targets Korean users. The FIU points to Korean-language websites, marketing aimed at local residents, and support for payments in won. A legal operator needs Information Security Management System (ISMS) certification and an FIU registration.
Operating without registration can bring up to five years in prison or a fine of up to 50 million won. FIU has referred 44 unregistered crypto platforms to investigators for possible legal action. Only around 28 providers are registered with the FIU. Authorities have also restricted crypto transfers from registered exchanges to unregistered platforms.
Gap for Existing Customers
The FIU acknowledged that blocking sites could complicate withdrawals for people who hold funds on them. It said it will coordinate withdrawal guidance with the Digital Asset eXchange Alliance (DAXA) and the operators. The reports reviewed do not describe the procedure, how long users will have to move assets, or whether the blocked exchanges will cooperate.
The regulator says unregistered platforms sit outside its oversight, so anti-money-laundering safeguards and asset protection are thin. It warns of hacking, data leaks, and use of such sites to hide criminal funds, including drug proceeds, and says recovering losses after fraud is difficult.
South Korea’s move marks a broader effort to bring foreign crypto platforms serving local users under its regulatory framework. While the website blocks could limit access to unregistered exchanges, the immediate challenge is helping existing customers withdraw their funds safely.
Related: AI Tokens Dominate South Korea’s Crypto Trading: What’s Driving It?
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