South Korean regulators announced a new enforcement step that will prevent residents from reaching 27 cryptocurrency exchange websites that have not complied with the nation’s anti-money-laundering registration requirements.
Background
The Financial Intelligence Unit (FIU) confirmed the decision after a review by the Korea Media and Communications Standards Commission held on 6 and 7 October. The review focused on platforms that operate outside the country but provide services to Korean customers without holding the mandatory registration under the Act on Reporting and Using Specified Financial Transaction Information.
Scope of the Block
The list of targeted sites includes a mix of well-known and smaller exchanges such as KuCoin, MEXC, Phemex, Bitrue, CoinW, BTCC, BitMart, BingX and DigiFinex. The prohibition applies to any domestic access to the websites, whether the servers are located abroad or the services are hosted within South Korea. The FIU indicated that the measure expands the earlier approach of blocking unregistered exchange applications on major app stores.
Earlier App Restrictions
In April 2025, South Korean authorities removed 14 unregistered exchange apps from Apple’s App Store and halted updates for 17 apps on Google Play. Those actions focused on mobile applications, whereas the current step targets the web portals that many users still rely on for trading and withdrawals.
Criteria for Targeting Overseas Operators
Regulators assess whether a foreign platform is deliberately courting Korean users. Indicators include the provision of a Korean-language interface, marketing directed at South Korean audiences, or support for transactions in the Korean won. If any of these elements are present, the exchange is deemed to be operating in the Korean market without proper authorization.
Impact on Users
The FIU acknowledged that blocking website access could complicate withdrawal processes for existing customers. To address potential difficulties, the agency plans to issue guidance and provide assistance through the Digital Asset eXchange Alliance (DAXA), working in coordination with the affected operators.
Regulatory Context
South Korea’s tightening of crypto regulations reflects a broader effort to align the sector with global AML standards. By extending enforcement from mobile apps to web platforms, authorities aim to close loopholes that allow unregistered exchanges to reach Korean investors.
Why it matters
The move signals a decisive shift in South Korea’s approach to cryptocurrency oversight, reinforcing the requirement for exchanges to obtain local registration before serving Korean users. It also highlights the government’s willingness to use both app-store bans and internet-level blocks to enforce compliance, potentially setting a precedent for other jurisdictions grappling with cross-border crypto services.
