Summary
- South Korea has blocked 27 unregistered cryptocurrency exchange websites, including KuCoin, MEXC, and BingX, expanding restrictions beyond mobile applications.
- Unregistered crypto operators face five years’ imprisonment or fines reaching 50 million won, while authorities strengthen enforcement against unauthorized platforms.
- The FIU will monitor alternative exchange websites and provide withdrawal guidance through DAXA, protecting investors from unauthorized trading platforms.
South Korean financial regulators have ordered access restrictions on 27 unregistered cryptocurrency exchange websites, including KuCoin, MEXC, and BingX. The restrictions expand existing enforcement measures against overseas trading platforms that provide services without obtaining regulatory approval.
According to an October 13 announcement from the Financial Intelligence Unit (FIU), authorities approved the restrictions following two regulatory reviews. The Korea Communications Standards Commission conducted those reviews on October 6 and 7 before authorizing the website restrictions.
Regulators identified several exchanges operating without registration, including Phemex, XT.com, Bitrue, CoinW, Poloniex, BTCC, and BitMart. Authorities will terminate accounts linked to domestic servers and restrict Korean access to websites hosted overseas.
Previously, regulators targeted mobile applications by restricting downloads and updates through Google’s Play Store and Apple’s App Store. With website restrictions added, authorities can now address unregistered exchange services across both mobile applications and internet browsers.
Also Read: Tom Lee Warns Ethereum Could Face More Selling Pressure as South Korean Stocks Crash
South Korea Expands Crypto Enforcement Without Requiring Proof of Investor Losses
We're back on X.
— 36Crypto (@36Crypto1) August 21, 2026
Our previous account (36crypto2) is currently unavailable while we continue working through the appeal process. In the meantime, this is our new official account. While you are on this page, please support us by sharing and following.
South Korean authorities have strengthened enforcement procedures to address unregistered cryptocurrency businesses before investors report financial losses. Under the revised approach, regulators can request website restrictions once they establish that a platform operates without registration.
This approach reflects existing requirements under the Specific Financial Information Act, which prohibits unauthorized virtual asset business operations. Cryptocurrency companies must obtain Information Security Management System certification and register with the FIU before serving Korean customers.
Importantly, overseas exchanges must follow these requirements when their services specifically target South Korean residents. Such activities include operating Korean language websites, advertising to domestic customers, and supporting transactions involving the Korean won.
Operators violating these requirements face penalties of up to five years’ imprisonment or fines reaching 50 million won. Meanwhile, the FIU has already referred 44 unregistered virtual asset businesses to investigative authorities for further action.
Regulators have also restricted registered exchanges from transferring digital assets to unauthorized operators and blocked certain credit card purchases. Industry findings have raised additional concerns about trading costs associated with unauthorized cryptocurrency platforms serving South Korean investors. A June investigation found that these exchanges charged transaction fees ranging from 1.5% to 10%.
By comparison, South Korea’s five leading won exchanges charged an average transaction fee of approximately 0.16%. Consequently, some unauthorized platforms charged fees reaching roughly 62 times the average domestic exchange rate.
FIU Plans Additional Website Restrictions and Investor Withdrawal Support
Financial authorities will monitor unregistered exchanges that attempt to bypass restrictions by switching website addresses or establishing alternative domains. The FIU intends to request additional access restrictions whenever investigators identify replacement websites serving domestic cryptocurrency traders.
For affected customers, the Digital Asset Exchange Association will provide guidance on withdrawing funds from restricted trading platforms. South Korea currently has 28 virtual asset service providers legally registered with the FIU.
Regulators have urged investors to verify exchange registration and avoid advertisements promising guaranteed returns or privileged investment information. The FIU also advised customers using unauthorized exchanges to withdraw their cryptocurrency holdings and deposits to reduce potential exposure.
Also Read: Crypto Price Update: Bitcoin Slides as GRX Chain Surges 61.9% and Ethereum Falls
