South Korea has expanded restrictions on unregistered crypto platforms to 27 websites, citing compliance and investor-protection concerns.
South Korea’s Financial Intelligence Unit (FIU) has disclosed an order blocking domestic access to 27 unregistered crypto exchange websites, including KuCoin, MEXC, Phemex, BingX, and BitMart. The blocks were approved by the country’s communications review body. Sites hosted abroad will face access blocks, while those with servers or operators in South Korea will face service termination.
Wider crackdown on offshore platforms
The order extends earlier measures against unregistered platforms. The FIU had already asked Google and Apple to block new installations and updates of unregistered exchange apps, and in March 2025, Google Play restricted 17 such platforms, including KuCoin and MEXC. Under the new approach, regulators plan to seek blocks as soon as they detect unregistered activity, subject to the review body’s approval, without waiting for court rulings or confirmed user losses.
To determine whether an offshore platform operates locally, regulators consider factors such as Korean-language websites, marketing aimed at Korean users, and support for payments in won. Operating without registration can lead to up to five years in prison or a fine of up to KRW 50 million (USD 37,000). The FIU has referred 44 unregistered operators to investigators and plans to seek further blocks on replacement sites that relaunch under new addresses.
Implications for users and domestic exchanges
The FIU has urged users holding assets on unregistered platforms to withdraw them immediately. It acknowledged that the blocks may restrict withdrawals and plans to guide affected users through the Digital Asset eXchange Alliance (DAXA). The cost of using offshore platforms has been significant for Korean users: according to Tiger Research, Korean investors paid an estimated USD 3.5 billion in fees to foreign exchanges in 2025.
Net stablecoin outflows from the country’s major exchanges continued for an 18th consecutive month in June 2026. Users returning funds will find a smaller domestic market, as the value of crypto held on Korean exchanges fell 33% in the first half of 2026 compared with the second half of 2025. Some Korean capital has also moved to decentralised platforms, with Tiger Research finding that Korean-owned wallets have deposited about USD 1.64 billion into Hyperliquid, Lighter, and Variational since January 2024.
