South Korea has ordered the blocking of 27 cryptocurrency exchange websites, including KuCoin, BitMart and MEXC, for allegedly operating without the registration required under the country’s anti-money laundering laws.
The Financial Intelligence Unit (FIU), which operates under South Korea’s Financial Services Commission, announced the decision on October 13, 2026, following reviews conducted by the country’s communications authorities on October 6 and 7.
The affected platforms allegedly failed to register as virtual asset service providers under South Korea’s Act on Reporting and Using Specified Financial Transaction Information. The law requires cryptocurrency businesses serving South Korean customers to register with the FIU and comply with anti-money laundering requirements.
Under the restrictions, the websites of the affected exchanges will be blocked for users in South Korea. Existing customers may also encounter difficulties accessing their accounts and withdrawing their funds.
The list of affected platforms includes several internationally known cryptocurrency exchanges, including KuCoin, BitMart, MEXC, Phemex, XT.com, Bitrue, CoinW, Poloniex, DigiFinex, BingX, Pionex, BTCC, Blofin and WEEX.
Other platforms named in the enforcement action include ZoomEX, Apex Pro, P2B, KCEX, SUPEREX and NonKYC.io.
South Korean authorities have increasingly targeted overseas cryptocurrency platforms that provide services to local users without the required registration.
The latest action follows earlier measures restricting the distribution and updating of applications belonging to unregistered exchanges through Google Play and Apple’s App Store.
The FIU has also referred dozens of unregistered virtual asset operators to investigative authorities as part of its broader efforts to enforce compliance within the country’s cryptocurrency market.
Regulators Address Users’ Access to Funds
The website restrictions could create difficulties for South Korean customers who hold cryptocurrency or cash balances on the affected platforms.
To help affected users recover their assets, regulators plan to work with the Digital Asset eXchange Alliance (DAXA), an industry association representing South Korea’s cryptocurrency exchange sector.
The initiative is intended to guide users through the process of withdrawing their funds from the affected platforms.
Authorities have also warned users about the risks of dealing with unregistered exchanges, including potential fraud, security breaches, personal information leaks and difficulties recovering assets.
Users have been advised to check whether their exchange is registered and to exercise caution when sharing sensitive information with platforms operating outside the country’s regulatory framework.
South Korea Tightens Crypto Market Oversight
The enforcement action highlights South Korea’s continued efforts to bring cryptocurrency businesses operating in its market under its regulatory framework.
Under the country’s rules, overseas exchanges are not exempt from registration requirements simply because they are headquartered outside South Korea. Platforms serving local customers must comply with applicable anti-money laundering laws.
However, the latest restrictions do not amount to a global shutdown of the affected exchanges. They target access to the platforms within South Korea and their ability to serve local users without the required registration.
The development adds to the regulatory challenges facing international cryptocurrency exchanges as governments strengthen oversight of digital asset trading and cross-border services.
For South Korean users, the immediate concern will be accessing their holdings and withdrawing funds from affected platforms. For exchanges, the restrictions reinforce the importance of meeting local compliance requirements before offering services in foreign markets.