South Korea is stepping up its crackdown on unregistered cryptocurrency exchanges, restricting access to 27 platforms, including KuCoin, BitMart and MEXC. The latest action extends the government’s enforcement efforts from mobile applications to exchange websites, further limiting access to foreign trading services.

The Financial Intelligence Unit (FIU) said Tuesday that the Korea Communications Standards Commission approved the restrictions following assessments on Oct. 6 and 7. Websites operated by overseas exchanges will be blocked, while domestic platforms operating without registration will have their services terminated.

The decision closes another route for South Korean investors to use unauthorized exchanges. Authorities previously restricted access to their mobile applications through Google and Apple last year. Regulators can now initiate website-blocking measures after identifying unregistered activity without waiting for a court judgment or proof that customers have incurred losses.

The FIU has not revealed how long the restrictions will remain effective or set a registration deadline for the affected platforms. Exchanges must register with the agency and satisfy South Korea’s security and anti-money laundering (AML) standards to legally serve customers in the country.

A KuCoin spokesperson said the exchange respects the laws and regulations applicable in the markets where it operates and regularly updates its compliance procedures as requirements change. The spokesperson also said customer assets remain safe and secure, with any additional announcements to be made through official channels.

BitMart, Phemex and MEXC had not immediately responded to CoinDesk’s requests for comment.

South Korea is also developing a proposed Digital Asset Basic Law that has yet to take effect. The legislation aims to establish rules for digital asset issuance, trading, custody and regulatory supervision. In April, the Financial Services Commission and Financial Supervisory Service also introduced measures that removed exchanges’ ability to grant exceptions allowing users to bypass holding periods.

The FIU said it has sent 44 unregistered operators to investigators and plans to pursue further website restrictions if platforms attempt to return using different domain names. The regulator currently has 28 registered virtual asset service providers.

Authorities cautioned that customers using unregistered exchanges could encounter difficulties withdrawing their money or recovering their assets. The FIU said it would cooperate with the Digital Asset eXchange Alliance (DAXA) to assist affected users if the restrictions prevent them from accessing their funds. Investors were also encouraged to verify an exchange’s registration status and withdraw assets held on unauthorized platforms.

The measures come as tighter domestic rules continue to drive cryptocurrency holdings beyond South Korea’s regulated exchange market. An estimated $110 billion in crypto assets left domestic exchanges in 2025.