South Korea blocks 27 crypto sites over unregistered operations

South Korean authorities are moving to block 27 websites belonging to unregistered crypto service providers as part of an expanded crackdown, including sites associated with KuCoin, MEXC, Phemex and BingX.

Announced by the Financial Intelligence Unit on Oct. 13, the move extends enforcement beyond mobile applications to websites and follows approval by the Korea Communications Standards Commission on Oct. 6 and 7. Accounts used by operators on domestic servers will be terminated, while overseas-hosted websites will be blocked within South Korea.

The FIU said it would no longer need to wait for confirmed consumer losses or the conclusion of investigations before seeking restrictions, as unregistered virtual asset operations are already prohibited by law.

The rules also cover foreign platforms that target South Korean customers, including through Korean-language websites, local marketing or support for Korean won payments. Providers must meet requirements including ISMS certification and FIU registration, with violations punishable by up to five years in prison or a fine of up to 50 million won.

The FIU has referred 44 unregistered operators to investigative agencies and restricted transfers between registered providers and those entities, as well as credit card purchases from unregistered platforms. Regulators said users face greater risks because these operators are outside key domestic oversight frameworks.

Authorities will monitor replacement domains and request additional blocks, while DAXA will help users find withdrawal procedures. The FIU advised customers to withdraw assets and deposits promptly if a provider is identified as unregistered.

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