South Korea Blocks 27 Crypto Exchanges: KuCoin, BitMart, MEXC Hit

South Korea is expanding its crypto crackdown. The Financial Intelligence Unit (FIU) announced Tuesday that it is blocking access to the websites of 27 unregistered crypto exchanges, including KuCoin, BitMart, and MEXC.

The Korea Communications Standards Commission approved the restrictions after reviews on October 6 and 7. Websites operated from overseas will be blocked, while domestic operations face service termination. This widens a crackdown that already restricted these platforms' mobile apps on Google and Apple last year.

Registration is the line

Foreign exchanges must register with the FIU and meet security and anti-money-laundering requirements to legally serve South Korean customers. Regulators can now seek website blocks as soon as they detect unregistered activity—no court ruling or evidence of customer losses required. The FIU has not set a deadline for exchanges to register or said how long restrictions will last.

A KuCoin spokesperson said the exchange respects applicable laws and that user assets remain safe. BitMart, Phemex, and MEXC did not immediately respond to CoinDesk's request for comment.

What traders should know

The FIU warned that traders using unauthorized platforms may struggle to recover funds. It said it will work with the Digital Asset eXchange Alliance to help affected customers withdraw funds where access restrictions create problems. It also urged investors to verify whether their exchange is registered and to pull assets from unauthorized operators.

Only 28 virtual asset service providers are currently registered with the regulator. The FIU has referred 44 unregistered operators to investigators and plans further blocks against websites that reopen under different addresses. South Korean investors moved an estimated $110 billion out of domestic exchanges in 2025 due to stricter rules.

The takeaway: South Korea is closing every door it can find on unregistered crypto venues.