South Korea Blocks KuCoin, MEXC and 25 More Exchange Sites. Here’s What Platforms Should Check.

Signal Spotlight · South Korea and unregistered crypto exchanges

What happened

According to Finance Magnates and BeInCrypto, South Korea's Financial Intelligence Unit (FIU) disclosed on 13 October that access blocks had been approved for 27 websites run by unregistered overseas exchanges. A communications review body reviewed the sites on 6 and 7 October and approved the measures. The coverage names KuCoin, MEXC, Phemex, BingX and BitMart. The other platforms are not named in the articles we read, and one embedded post lists Poloniex and BTCC.

The coverage does not describe the technical method of blocking. BeInCrypto says sites hosted abroad face domestic access blocks, and sites with servers or operators in Korea face service termination. We found no statute cited. Finance Magnates reports that operating without registration can bring up to five years in prison or a fine of up to 50 million won, about $37,000.

This follows earlier steps. In March 2025, Google Play restricted 17 unregistered platforms, including KuCoin and MEXC, after the FIU sought limits on installs and updates. In August 2022, the FIU sought to block access to 16 platforms. BeInCrypto reports the FIU has also referred 44 unregistered operators to investigators.

What the order does and does not say

The approach is preventive. Finance Magnates reports that authorities do not need to wait for a court ruling or confirmed user losses. The FIU plans to seek blocks whenever it detects unregistered activity, subject to the review body's approval, and to go after replacement sites if blocked platforms relaunch under new addresses.

Local operation is judged by conduct. BeInCrypto reports regulators look at Korean-language websites, marketing aimed at Korean users, and won payment support. That means an offshore platform can fall inside the rules without a Korean office.

Users are told to withdraw. The FIU urged users to withdraw assets from unregistered platforms immediately, while acknowledging the blocks may make withdrawals harder. It plans to guide users through the Digital Asset eXchange Alliance (DAXA).

The platforms have said little. A KuCoin spokesperson told BeInCrypto that "compliance remains central to KuCoin's business strategy" and that "user assets remain safe and secure." MEXC, BingX, Phemex and BitMart had not responded when it published.

Why it matters

The signal is that offshore platforms with local-facing features are now being treated as operating locally, and are being cut off without a long process. For anyone relying on an offshore exchange for treasury or liquidity, the question is no longer only whether it is licensed at home, but whether any regulator where its users are has a basis to act.

The obvious expectation is that Korean volume moves to domestic exchanges such as Upbit and Bithumb. The coverage we read does not support that yet. It does not mention either exchange or offer any flow data. It does point elsewhere. BeInCrypto reports that Korean-owned wallets deposited about $1.64 billion into Hyperliquid, Lighter and Variational since January 2024, and that net stablecoin outflows from Korea's major exchanges ran for an 18th straight month in June. We read that as a reason to watch on-chain venues too, though the coverage does not say blocked-exchange users are moving there.

The fee argument is also the regulators' side of the story. The FIU cited average fees of 1.5% to 10% on flagged exchanges, against 0.16% at the five largest won-based exchanges. BeInCrypto says the comparison comes from a June probe by DAXA and registered operators, who are not neutral. The same piece cites Tiger Research estimating that Korean investors paid foreign exchanges about $3.5 billion in fees in 2025.