Seoul's 27-Crypto Site Firewall: Kucoin, MEXC and Friends Told to Show Korean Won the Door 🇰🇷

South Korea's Financial Intelligence Unit has approved the blocking of 27 websites operated by unregistered offshore crypto exchanges, marking the expansion of enforcement actions beyond previously targeted mobile apps. The action, announced Tuesday, includes major platforms KuCoin, MEXC, Phemex and Bitrue, alongside CoinW, BTCC, BitMart, BingX, DigiFinex and others.

The decision followed reviews by the Korea Media and Communications Standards Commission conducted on Oct. 6 and 7. Authorities based the blocks on the Act on Reporting and Using Specified Financial Transaction Information, South Korea's primary anti-money laundering legislation for virtual asset service providers.

"With this decision, blocking measures against illegal virtual asset operators will also apply to internet websites, following apps such as those on Apple and Google," the FIU said, according to a translation. The measures are designed to terminate services hosted domestically or block access to overseas-operated websites that have not registered with Korean authorities.

In determining which platforms target Korean customers, the FIU assesses whether operators offer Korean-language services, market to South Korean users, or support transactions denominated in Korean won. The website-level blocks extend earlier restrictions on mobile applications; South Korea had blocked downloads and updates for 14 unregistered exchange apps on Apple's App Store after earlier restrictions on 17 apps through Google Play.

The FIU acknowledged that the website blocking measures could complicate withdrawals for existing users. The agency stated it plans to provide withdrawal guidance and support through the Digital Asset eXchange Alliance, or DAXA, working in cooperation with the affected operators.