Key facts
- South Korea will block 27 unregistered crypto exchange websites.
- KuCoin, MEXC, Phemex, and Bitrue are among the blocked platforms.
- The blocks target unregistered virtual asset service providers.
- Authorities will assist users with asset withdrawals.
- The move follows earlier restrictions on crypto exchange apps.
South Korean authorities have decided to block domestic access to 27 websites operated by unregistered cryptocurrency exchanges and virtual asset service providers, including prominent platforms like KuCoin and MEXC. The Financial Intelligence Unit (FIU) announced the decision on Tuesday, stating it followed reviews by the Korea Media and Communications Standards Commission on October 6 and 7.
The list of blocked sites also includes Phemex, Bitrue, CoinW, BTCC, BitMart, BingX, and DigiFinex. These measures are being implemented under South Korea's anti-money laundering legislation, the Act on Reporting and Using Specified Financial Transaction Information, which requires virtual asset service providers to register with authorities.
The FIU clarified that these blocking measures extend to websites, mirroring earlier actions taken against unregistered mobile applications on platforms like Apple's App Store and Google Play. In April, South Korea had already blocked downloads and updates for 14 unregistered crypto exchange apps.
Authorities determine if overseas operators are targeting South Korean customers by assessing factors such as the availability of Korean-language services, marketing efforts directed at South Korean users, and support for transactions in Korean won.
The FIU acknowledged that the website blocks could create difficulties for existing users attempting to withdraw their assets. To address this, the agency plans to offer guidance and support for withdrawals, in cooperation with the affected operators and through the Digital Asset eXchange Alliance (DAXA).