South Korea blocks 27 crypto exchanges, including Bitmart and Kucoin
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Summary
South Korea is blocking the websites of 27 unregistered cryptocurrency exchanges, including KuCoin, BitMart, and MEXC, after previously restricting access to their mobile apps. The Financial Intelligence Unit (FIU) approved these restrictions to curb unauthorized crypto services. Exchanges must register with the FIU and comply with security and anti-money laundering requirements to legally operate in South Korea.
Why it matters
The source highlights that this crackdown limits South Korean investors' access to foreign unregistered exchanges, potentially making it harder for users to recover funds. It reflects increasing regulatory enforcement in South Korea and aims to protect investors by pushing crypto platforms to comply with local laws.
Key context
The FIU previously restricted access to unregistered exchanges’ mobile apps on Google and Apple last year. The new website blocking rules allow regulators to act immediately upon detecting unregistered activity without needing court orders or evidence of financial loss. South Korea is also awaiting the Digital Asset Basic Law, which will further formalize digital asset regulations.
Key numbers and entities
The FIU blocked 27 unregistered crypto exchange websites. Only 28 virtual asset service providers are currently registered with South Korea’s regulator. Approximately $110 billion in crypto moved overseas from South Korean investors in 2025. Exchanges mentioned include KuCoin, BitMart, MEXC, and Phemex. The Digital Asset eXchange Alliance (DAXA) is involved in assisting affected customers.
What remains unclear
The FIU did not specify how long the restrictions will last or provide a deadline for exchanges to register. Responses from BitMart, Phemex, and MEXC were not provided. The details of enforcement actions and how user fund recovery will be facilitated remain unspecified.