South Korea Moves to Block 27 Crypto Sites, Including KuCoin and MEXC

South Korea is moving to cut domestic access to 27 crypto websites run by unregistered operators. The Financial Intelligence Unit (FIU) said the Korea Media and Communications Standards Commission decided on the blocks after two rounds of review on October 6 and 7, following an FIU request.

The sites belong to what the FIU calls illegal virtual asset handlers, meaning companies doing crypto business in Korea without reporting to the regulator. Under the Specific Financial Information Act, unregistered dealing is illegal in itself, which is why the FIU argues it can step in before any user has reported a loss.

Two Kinds of Block, Depending on Where the Server Sits

The decision covers two different measures, and which one applies depends on the operator. If the server or the operator is based in Korea, the service is terminated. If the site is hosted overseas, access is blocked instead. Both take the site out of reach for domestic users, but only the first shuts the service itself down.

Korea already applies the same logic to mobile apps. At the FIU's request, app market operators including Google and Apple block new installs and updates of unregistered operators' apps in the country. This decision extends that treatment to websites.

The Names: KuCoin, MEXC and 25 Others

Reports on the announcement name KuCoin, MEXC, Phemex, XT.com and Bitrue among the blocked sites (Yonhap). The wider list also includes CoinW, BTCC, BitMart, BingX and DigiFinex, while Korean coverage adds CoinSolution, Sinbad Solution, Tapbit, Coinmy, BigOne and Ubit (Newsway).

Why the FIU Moved Before Any Reported Losses

Registration is the dividing line. To operate legally in Korea, a virtual asset service provider has to meet requirements such as Information Security Management System certification and file a report with the FIU, and the same law applies to foreign operators targeting Korean residents. The FIU counts 28 legally registered providers, and says any other company trading crypto as a business in the country is illegal.

Authorities judge whether an overseas operator is doing business in Korea using three signals: a Korean-language homepage, marketing aimed at Korean customers, and support for won-denominated payment.

The fee gap is part of the argument. A June 2026 joint inspection by DAXA and registered operators put the average trading fee at the flagged companies between 1.5% and 10%, up to 62 times the 0.16% average at Korea's five major won-based exchanges.

The FIU says it has referred 44 illegal operators to investigative authorities so far. On penalties, one report puts operating without registration at up to five years in prison or a fine of up to 50 million won. The FIU's own release states fines of up to 100 million won per violation for registered operators that breach transaction rules, plus administrative sanctions on the company and staff. The exact wording of the unregistered-operator penalty was not directly readable in the release.

What Users Are Told, and What Comes Next

The FIU advises users to check whether their platform is registered, to withdraw crypto and deposits immediately from any operator that is not, and not to hand over private keys, login details or ID copies. It also warns that referral or recommendation activity for unregistered operators can be judged as assisting illegal business, leaving the referrer open to criminal punishment.

Because a block can leave existing users unable to withdraw, the FIU said withdrawal methods and procedures will be explained through DAXA with the operators' cooperation. It added that it will keep monitoring alternate sites, since blocked operators may try to keep serving users by changing their web address, and will request further reviews. The FIU also plans to publish or better circulate the list of registered providers and the list of operators referred to investigators.

Two things remain open. Whether the block has taken technical effect or has only been decided, and the exact date access stops working, is not confirmed. Neither is any public response from KuCoin or MEXC.