The government of South Korea placed a ban on accessing 27 cryptocurrency exchange websites in the country after issuing regulations on October 6 and 7. These 27 exchange websites include KuCoin, MEXC, and BingX. According to the Financial Services Commission (FSC), on October 13, its Financial Intelligence Unit (FIU) submitted a request to ban access to those exchange websites through a communications authority. This will expand regulation that was earlier applied to foreign cryptocurrency exchange apps to websites that are not registered domestically. These websites are KuCoin, MEXC, Phemex, XT.com, Bitrue, CoinW, Poloniex, BTCC, BingX, and BitMart.
South Korea Extends Enforcement to Unregistered Crypto Trading Websites
The FIU noted that the measures apply to those sites that continue to operate even after being requested not to allow access to virtual asset service providers (VASPs) who are not registered. After two rounds of discussion, the communications review authority approved the restrictions on 27 websites. Domestic access will be denied to foreign websites, while websites operating on domestic servers or by domestic organisations will be terminated.
This new announcement comes after South Korea had limited the operation of foreign cryptocurrency exchange applications that were accessed via Google Play Store and Apple’s App Store. According to the previous limitations, people could not download any application or update their applications from these app stores in the domestic market.
In March 2025, Google Play restricted the use of 17 unregistered exchanges after complaints by the Korean regulatory body. In April, Apple also imposed limitations on platforms that failed to register locally. The government has continued reviewing foreign operators who do not have permission to serve Korean customers.
According to the FIU, restrictions could be imposed on websites after the discovery of any illegal activities by the business entity without waiting for the completion of the investigation or proof of financial losses suffered by the customer. According to the FIU, the unregistered virtual asset businesses were in violation of the Specific Financial Information Act and said that early restrictions were intended to prevent consumer harm.
Operating without registration may be punishable by imprisonment for a term not exceeding five years or a fine of up to KRW 50 million (Rs. 35 lakh). The government has referred 44 virtual asset operators that are not registered to investigating agencies, even though the commission has not mentioned that all these referrals have been charged criminally or convicted.
FIU has mandated registered crypto entities to limit transactions made by registered virtual asset operators. Licensed crypto enterprises that violate such transaction restrictions are subject to fines of up to KRW 100 million (Rs. 70 lakh).
Use of credit cards for transactions with unregistered virtual asset services will have its own set of regulations. The regulations for such type of transactions have been enacted by the government as amendments made in May 2024.
