The South Korean Financial Intelligence Unit (FIU) has ordered the blocking of 27 unregistered cryptocurrency exchanges, including KuCoin, MEXC, Phemex, BingX, and BitMart. The decision follows regulatory reviews conducted on October 6 and 7, with the order officially disclosed on October 13. Platforms hosted abroad will be blocked, while those with local servers or operators face service termination.
Regulators are identifying offshore platforms by monitoring Korean-language websites, local marketing efforts, and support for won-based payments. Operating without proper registration in South Korea can result in a fine of ₩50 million or up to five years in prison. To date, the FIU has referred 44 unregistered operators to investigators and intends to block replacement sites that emerge under new addresses.
The FIU has advised users to withdraw assets from these platforms immediately, noting that the blocks may restrict future access. The regulator is coordinating with the Digital Asset eXchange Alliance (DAXA) to assist users. A June investigation by DAXA revealed that flagged exchanges charged fees between 1.5% and 10%, significantly higher than the 0.16% average seen on major domestic exchanges.
According to data from Tiger Research, Korean investors paid approximately $3.5 billion in fees to foreign exchanges in 2025. Between 2021 and 2026, an estimated ₩700 trillion was moved from domestic to overseas platforms. Meanwhile, the market value of crypto assets on Korean exchanges declined by 33% in the first half of 2026, reaching ₩58.9 trillion.
