South Korea's Financial Intelligence Unit is blocking the websites of 27 unregistered cryptocurrency exchanges, including KuCoin, BitMart and MEXC, extending a crackdown that began with mobile-app restrictions last year. The FIU announced Tuesday that the Korea Communications Standards Commission approved the blocks following reviews on Oct. 6 and 7. Websites operated from overseas will be blocked, while platforms operating domestically face service termination.

The decision closes another access route for South Korean investors after authorities restricted unregistered exchanges' apps on Google and Apple storefronts last year. Regulators can now request website blocks as soon as they detect unregistered activity, without waiting for a court ruling or evidence that customers lost money.

What must exchanges do to operate legally?

Any exchange serving South Korean customers must register with the FIU and meet the country's security and anti-money-laundering requirements. The FIU did not specify how long the current restrictions will last, nor did it set a registration deadline for the 27 affected platforms.

Only 28 virtual asset service providers currently hold registration with the regulator. The FIU said it has referred 44 unregistered operators to investigators and will pursue further blocks against websites that reopen under different addresses.

"We respect applicable laws and regulations across jurisdictions and continuously strengthen our compliance framework in response to evolving regulatory requirements," a KuCoin spokesperson said. "User assets remain safe and secure, and we will communicate any further updates through our official channels."

BitMart, Phemex and MEXC did not immediately respond to a request for comment.

Can affected customers recover their funds?

The FIU warned that traders using unauthorized platforms could face difficulties recovering their money. The regulator said it will coordinate with the Digital Asset eXchange Alliance (DAXA), an industry association, to help affected customers withdraw funds where the access restrictions create problems. It also urged investors to verify an exchange's registration status and move assets off unregistered operators.

The enforcement push sits within a broader tightening of South Korea's digital-asset rules. The proposed Digital Asset Basic Law, not yet in force, would establish a legal framework covering issuance, trading, custody and supervision. In April, the Financial Services Commission and the Financial Service Supervisory Service announced rules removing the discretion exchanges had to let users bypass holding periods.

The capital flight is already measurable. An estimated $110 billion left domestic exchanges in 2025, according to reports tracking months of stricter rules pushing South Korean investors toward offshore venues.

The blocks signal that website-level enforcement now operates on detection rather than demonstrated harm, and platforms that relaunch under new domains can expect successive restrictions as the FIU works through its referral pipeline.