South Korea has moved to restrict domestic access to 27 cryptocurrency exchange websites, including prominent platforms such as KuCoin and MEXC, as part of its ongoing efforts to regulate unregistered digital asset operators. The restrictions were announced by the country’s Financial Intelligence Unit (FIU) on October 13, following deliberations held on October 6-7.
The decisions were implemented by South Korea’s telecommunications regulator at the request of the FIU, signaling a broader enforcement approach targeting both domestic and foreign cryptocurrency services operating within the country’s borders.
The official list of affected websites includes both KuCoin and MEXC, highlighting the government’s stance that foreign crypto providers offering services to Korean residents must comply with the same registration requirements imposed on domestic firms. These requirements include obtaining certification under South Korea’s Information Security Management System (ISMS), as well as adhering to localization factors such as operating Korean-language interfaces, tailoring marketing efforts toward local users, and facilitating payments in the Korean won.
Prior enforcement actions have already limited access to these platforms through mobile app stores; specifically, 17 applications—including KuCoin and MEXC—were restricted on Google Play as early as March 26, 2025. The recent website blackout marks an escalation in regulatory pressure beyond app distribution channels.
The FIU acknowledged potential disruptions to existing users, noting that blocking access could hinder account management and withdrawal processes. While website blocks may complicate direct interaction with the platforms, no immediate alternative withdrawal mechanisms were specified in the announcement.
To address this concern, the FIU indicated plans to work with DAXA—an industry association representing Korean exchanges—to develop detailed withdrawal procedures in coordination with the affected operators. However, the timeline for implementing these measures remains unclear, leaving users uncertain about how to safely retrieve funds from now-blocked services.
In addition to urging users to promptly withdraw assets from unregistered platforms, the FIU issued warnings against sharing sensitive credentials such as login details, private keys, or identification documents with these operators.
Looking ahead, authorities stated their intention to proactively enforce access restrictions upon detecting unregistered activity, without waiting for evidence of user harm or judicial proceedings. They also plan to monitor any changes to domain names or web addresses used by these platforms and pursue additional blocking orders if necessary.