South Korea Crypto Users Face Disruption as 27 Exchange Sites Shut Down

FIU plans exit guidance through DAXA alongside operators, as website blocks cause access concerns that are being raised by existing users.

South Korea blocked domestic access to 27 crypto platforms, including KuCoin and MEXC, deepening its crackdown on unregistered exchanges while withdrawal concerns are being expressed by existing users.

The country’s Financial Intelligence Unit disclosed these decisions on Oct. 13, following two reviews on Oct. 6–7 by South Korea’s communications regulator, which were requested by the FIU.

Both exchanges feature on the official list of affected sites, while the FIU maintains that overseas platforms serving local users face registration rules that are required for domestic firms as well.

The guidelines mandate ISMS security certification, and regulators review Korean language options, local marketing, and won payment options when local business activity is being evaluated for offshore exchanges.

New downloads and app updates for unregistered providers already were blocked across software marketplaces, according to the FIU.

South Korea previously limited 17 Google Play apps, including KuCoin and MEXC, on March 26, 2025, while web bans were being pursued by the FIU alongside additional app store measures.

For users holding assets on a platform, website bans complicate account access and cashouts, though potential user friction is being acknowledged by the FIU regarding potential withdrawal restrictions.

Withdrawal Support Relies on Cooperation From Operators#

FIU plans to issue clear cashout procedures through DAXA with operator support to alleviate website block friction, though these supportive steps are being framed as a future promise.

The official statement outlines no platform-specific schedule or confirmed cashout pathway for KuCoin or MEXC users, who still seek clear guidance on reaching funds once local web access is restricted.

FIU urged users to withdraw their crypto assets and deposits immediately upon discovering an unregistered operator, while warnings were issued against sharing private keys, login credentials, or identification copies.

FIU said authorities plan to enforce website blocks immediately upon spotting unauthorized operations, so swift enforcement is being pursued before financial losses or court verdicts materialize.

Officials also intend to track alternative web addresses and request fresh blocking assessments if illegal operations are being continued under modified domain names.