South Korea moves to block 27 crypto websites, including KuCoin, MEXC
Authorities said the restrictions are aimed at unregistered exchanges and have acknowledged that customers could have difficulty withdrawing assets.
South Korean authorities have moved to block access to 27 cryptocurrency exchange websites operating without proper registration in the country. The targeted platforms include major international exchanges such as KuCoin and MEXC. Officials confirmed the restrictions are directed at unregistered foreign exchanges and acknowledged that users currently holding assets on these platforms may face difficulties withdrawing their funds.
South Korea has been steadily tightening its regulatory framework around digital asset trading since implementing the Virtual Asset User Protection Act, which came into full effect in 2024. Under South Korean law, foreign crypto exchanges must register with the Financial Intelligence Unit (FIU) to legally serve Korean customers. Platforms that fail to comply are classified as unregistered entities and subject to access restrictions and potential legal consequences.
The move signals continued regulatory pressure on offshore exchanges operating in one of Asia's most active crypto markets. For users affected by the blocks, the inability to access accounts or execute withdrawals presents an immediate practical concern. The action may also prompt other unregistered platforms serving Korean users to either pursue official registration or exit the market entirely to avoid enforcement.
Observers will be watching whether the affected exchanges respond by seeking FIU registration or formally withdrawing from the South Korean market. Regulators are also expected to monitor compliance and may expand the list of blocked platforms if additional unregistered exchanges are identified in the coming months.
Source: Cointelegraph
