South Korea Blocks 27 Crypto Websites Including KuCoin and MEXC
South Korean authorities have approved measures to block domestic access to 27 websites operated by unregistered crypto exchanges and virtual asset service providers, including major platforms like KuCoin and MEXC. This initiative aims to curb illegal operators and follows earlier restrictions on crypto mobile applications. Authorities also intend to assist users in withdrawing funds from the blocked sites.
Reasons and Legal Framework for the Blocks
The decision to block 27 websites was approved following reviews by South Korea's Media and Communications Standards Commission on October 6 and 7. The sites involved belong to companies operating without registration under the country’s Act on Reporting and Using Specified Financial Transaction Information, an anti-money laundering law.
The blocked platforms include crypto exchanges and virtual asset service providers not registered as mandatory entities under this legislation. The list features KuCoin, MEXC, Phemex, Bitrue, CoinW, BTCC, BitMart, BingX, DigiFinex, among others.
Blockage Mechanisms
South Korea’s Financial Intelligence Unit (FIU) said the measures involve terminating services hosted domestically and blocking access to overseas websites. These restrictions follow earlier actions targeting mobile applications of such providers on Apple’s App Store and Google Play.
The blocking thus extends beyond mobile apps to the internet websites themselves, aiming to eliminate illegal virtual asset operators’ presence online and prevent users from accessing such services.
Criteria for Identifying Overseas Operators
The FIU stated it assesses foreign platforms by whether they provide Korean-language services, market to South Korean users, or support transactions in Korean won.
Based on these factors, the authorities determine if such platforms deliberately target Korean customers, which obliges them to register and comply with local regulations.
User Support and Cooperation with DAXA
The FIU acknowledges that blocking these websites might complicate withdrawal processes for existing users of the affected platforms.
Therefore, the agency plans to provide withdrawal guidance and support through the Digital Asset eXchange Alliance (DAXA), collaborating with the operators themselves.
This initiative aims to minimize user inconvenience and ensure smooth withdrawal of assets.
Why it matters
This news is significant as South Korea intensifies regulation of its crypto market by tightening control over illegal operators. Blocking access to well-known foreign crypto platforms illustrates the authorities’ readiness to enforce comprehensive measures on both mobile apps and websites, significantly impacting crypto users and businesses. At the same time, the commitment to safeguard user interests via cooperation with the digital exchange alliance highlights a balanced approach between regulation and market support.
Prepared from the source material with AI-assisted editing and checked against the supplied facts.
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