South Korea approves blocks on 27 crypto sites, including KuCoin

South Korea has approved domestic access restrictions on 27 unregistered crypto websites, extending its earlier app curbs to the web and potentially making it harder for customers to reach offshore accounts. The country’s Financial Intelligence Unit said the review commission approved the measures after hearings on Oct. 6 and 7, according to the Financial Services Commission announcement published Oct. 13. CoinDesk reported that the sites include KuCoin, BitMart and MEXC.

What exactly did regulators approve?

The decision covers 27 sites that are still operating and that the FIU had previously asked authorities to restrict. It does not mean every platform is being handled in the same way: sites operated from overseas face domestic access blocking, while those with servers or operators in South Korea can face service termination, the FIU said.

The measure targets providers that have not reported to the FIU under South Korea’s Act on Reporting and Using Specified Financial Transaction Information. To operate legally while serving Korean customers, a virtual asset provider must report to the FIU and meet requirements including Information Security Management System certification. The rules also apply to overseas businesses if they serve people in South Korea; authorities consider factors such as Korean-language websites, marketing to Korean customers and won payment support.

The FIU says unregistered operations are illegal even before a specific customer loss is confirmed. It argues that early access restrictions can reduce exposure to platforms outside Korea’s supervisory framework, where safeguards against money laundering and risks to customer assets may be lacking.

How does this change the existing restrictions?

Until this decision, the main access restrictions covered mobile apps: the FIU says Google and Apple app marketplaces had already blocked new installations and updates for unregistered providers. Website restrictions close another route into those services. The agency also says new operators and replacement web addresses can be referred for review as they are identified, making the block process an ongoing enforcement tool rather than a one-time list.

The wider action follows other measures, including telling registered providers to restrict transfers to unregistered operators. The FIU says 44 unregistered businesses have been referred to investigative authorities to date. South Korea has 28 registered virtual asset providers, according to the announcement.

The regulator cited a June joint investigation by DAXA and registered providers that found average trading fees of 1.5% to 10% at detected unregistered firms, compared with 0.16% at the five largest won-based exchanges. The FIU said the higher rates reached as much as 62 times that average. Those figures describe the firms found in that investigation; they do not establish the fees charged by every site in the 27-site decision.

What do users gain, and what should they watch?

Blocking access before confirmed losses may reduce exposure to platforms that lack Korean reporting and oversight requirements. The trade-off is that users with assets on affected services could find it harder to log in and withdraw. The FIU acknowledged that risk and said it would work with the Digital Asset eXchange Alliance to provide withdrawal instructions and support.

CoinDesk reported that KuCoin said user assets remain safe and secure and that it would provide updates through official channels; BitMart, MEXC and Phemex did not immediately respond to its request for comment. The FIU did not set a deadline for the restrictions or say how long they would last.

The next signals are whether access restrictions take effect consistently, whether affected users receive workable withdrawal guidance, and how quickly authorities act on replacement sites. Users should also check the FIU’s registered-provider list before sending funds or personal information to a platform.

Sources and documents

• Financial Services Commission announcement — fsc.go.kr