On October 13, South Korea’s Financial Intelligence Unit ordered the blocking of internet access to 27 unregistered overseas cryptocurrency exchanges. The affected platforms include KuCoin, MEXC, Phemex, and BitMart.
The decision followed regulatory reviews conducted on October 6 and 7 by the Korea Communications Standards Commission, which approved the restrictions. The goal is to stop virtual asset service providers from operating in South Korea without the required local licenses.
🇰🇷 JUST IN: South Korea blocks websites of 27 crypto exchanges, including KuCoin, MEXC and BingX.
Phemex, Poloniex, BTCC and BitMart are also on the list.
Their mobile apps were already restricted. Now the websites too. https://t.co/CEfa6Wl2eV
— Richard Mille (@IamRicchard) October 13, 2026
The restrictions apply to overseas platforms hosted outside South Korea. However, noncompliant websites using domestic servers face complete service shutdowns. Authorities also warned that customers with funds on the affected platforms may find it difficult to withdraw their remaining assets. As a result, licensed domestic exchanges will remain the only legal option for South Korean traders.
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A shutdown on exchanges targeting South Korean users
South Korea has been tightening its rules through several measures. In May 2024, authorities began blocking credit card payments to unregistered exchanges. Earlier this year, they also introduced bans on these platforms through Google Play and Apple’s App Store.
The 27 exchanges were targeted because they continued operating despite previous warnings. X commentator Flarrs noted that many offshore platforms had removed Korean-language support and stopped promoting their services locally to avoid regulatory attention. However, the exchanges now facing restrictions continued to organize events specifically for South Korean users.
As a Korean, let me explain.
The difference between the exchanges that were recently blocked and other exchanges is… (the criteria for blocking)
It comes down to whether or not they’re “conducting business in Korea.” These are the ones that crossed the line—they were told not to operate in Korea but pushed past the boundaries that authorities had previously turned a blind eye to.
Where are the other unlicensed overseas exchanges? Actually, every overseas exchange that Koreans can use is considered unlicensed in Korea.
However, while other exchanges have all been tactfully removing Korean language support and discontinuing events targeting Koreans since 2022, the ones blocked this time are the ones that just didn’t give a damn and continued to offer Korean language support, or where business development (BD) teams kept running events specifically for Koreans.
(Currently, a total of 44 exchanges have been reported to investigative authorities for illegal operations in Korea, and 27 of these have been subject to the recent blocking measures.)
https://t.co/G4XiagGSIH
— flarrs (@flarrs315) October 13, 2026
By continuing to target the local market, these platforms drew the attention of regulators and faced stronger enforcement.
Authorities are also preparing to prevent exchanges from bypassing the restrictions. Market observer Tom Knock noted that the government plans to identify and block backup domains that could help the affected platforms remain accessible.
@WuBlockchain 网站封锁其实是在之前限制app下载和更新的基础上加码。这次FIU除了封27家无牌境外交易所的网站，还把44家无牌VASP移交给了调查机关，并且计划对用来绕行的备用域名继续追加封锁。另外通过DAXA给受影响用户提供提币指引，说明监管的重点是先让用户有序转出资产，后续的执法压力比封网站本身更大。
— tom_knock (@tom_knockk) October 13, 2026
The government is also working with the local exchange association DAXA to help affected customers withdraw their funds before enforcement becomes stricter.
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Will the restrictions benefit South Korea’s domestic exchanges?
Blocking 27 overseas exchanges could significantly change the options available to South Korean retail investors. South Korea has fewer than 30 fully registered domestic cryptocurrency platforms. Therefore, this leaves traders with fewer choices and pushes more activity toward the regulated domestic market.
Retail investor Barbara Miller described the move as an aggressive attempt to build a monopoly. She argued that restricting access to overseas platforms could direct more trading activity toward major domestic exchanges such as Upbit and Bithumb.
@TheMoneyApe South Korea blocking 27 offshore exchanges and pushing traders toward Upbit and Bithumb is next-level monopoly building. https://t.co/B57DBQle9o
— Barbara Miller (@BarbaraM33_x) October 13, 2026
However, the restrictions could also benefit consumers by reducing their exposure to high trading fees. Investigations found that unregistered offshore exchanges often charged trading fees ranging from 1.5% to 10%.
By comparison, major licensed South Korean exchanges charge average fees of around 0.16%. Restricting payment options and blocking expensive overseas platforms allow the government to keep more retail trading activity within a cheaper, regulated market.
However, traders will also lose access to international exchanges and their liquidity options. While domestic platforms may offer lower fees and operate under local regulations, investors will have fewer choices when trading cryptocurrencies. Meanwhile, the FSC is also moving ahead with plans to introduce a comprehensive Digital Asset Basic Act as the country works to expand its crypto regulatory framework beyond investor protection.
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