- Authorities approved restrictions covering 27 websites, including KuCoin, MEXC and BingX.
- The measures extend earlier app restrictions to unregistered operators’ websites.
- Withdrawal guidance is planned, but no universal deadline was announced.
The South Korea crypto crackdown is expanding to 27 websites operated by unregistered businesses, including KuCoin, MEXC and BingX. The Financial Services Commission announced the decision on October 13 after communications regulators approved restrictions. The action extends earlier app controls to websites, raising access concerns for customers who still hold funds on affected platforms.
South Korea crypto crackdown extends beyond mobile apps
The communications review authority approved the measures following deliberations on October 6 and 7, acting on the FIU’s request. Overseas-hosted sites face domestic access blocks, while websites with domestic servers or operators face service termination.
Other named platforms include Phemex, XT.com, Bitrue, CoinW, Poloniex, BTCC and BitMart. Approval does not establish that every listed website was already inaccessible when the announcement appeared.
The South Korea crypto crackdown follows Google Play restrictions on 17 unregistered exchange apps in March 2025. Apple introduced similar controls in April, limiting downloads and updates through its domestic store.
Foreign exchanges serving Korean customers must meet local registration requirements, including ISMS security certification. Regulators consider Korean-language services, local marketing and won payment support when assessing whether an overseas business targets residents.
According to the FSC, unregistered operations can attract prison terms of up to five years or fines reaching 50 million won. The FIU has referred 44 operators to investigators, a broader group than the 27 websites covered here.
The South Korea crypto crackdown also allows earlier intervention once unauthorized activity is identified. Website restrictions still require review, but authorities need not wait for completed criminal investigations or confirmed customer losses.
Withdrawal access and trading fees draw regulatory scrutiny
The FIU said it would coordinate with DAXA and relevant businesses to provide withdrawal guidance. The announcement set no universal withdrawal deadline and did not confirm assistance from every affected operator.
Officials also highlighted fees identified during a June investigation. Examined businesses charged 1.5%–10%, compared with a 0.16% average across five major won-based exchanges. Those findings do not describe every platform named in the blocking order.
As the South Korea crypto crackdown widens, the FIU warns that unregistered providers may expose customers to hacking and fraud. Recovering losses can be difficult outside domestic supervision.
The regulator says 28 providers currently hold FIU registration. It plans to monitor replacement domains and seek further restrictions when unauthorized operators resume activity through new websites.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. CoinCryptoNewz is not responsible for any losses incurred. Readers should do their own research before making financial decisions.
