South Korea blocks 27 unregistered crypto exchanges including KuCoin and MEXC

South Korean regulatory authorities have finalized an order to block domestic internet access to 27 unregistered offshore cryptocurrency exchanges. The move, orchestrated by the Financial Intelligence Unit (FIU) and the Korea Communications Standards Commission, expands previous restrictions that had already removed these platforms' mobile applications from the Google Play and Apple App Stores.

Prominent global trading platforms included in the block are KuCoin and MEXC, alongside others such as Phemex, BingX, and BitMart. The crackdown targets entities that provide services to South Korean residents—through Korean-language interfaces, marketing, or won-settled payments—without securing mandatory local registration and Information Security Management System (ISMS) certification.

Regulators noted that unregistered operators lack essential safeguards for anti-money laundering and user asset protection. A joint investigation by the Digital Asset Exchange Alliance (DAXA) revealed that some unregistered platforms charged transaction fees as high as 10%, significantly higher than the 0.16% average seen at the 28 officially registered domestic exchanges.

The FIU has warned users to withdraw assets from these platforms and cautioned against sharing private keys or identification documents. Authorities also indicated they will monitor for alternative domains used by these exchanges to bypass the blocks.