UPDATE: South Korea's FIU orders ISP blocks on 27 unregistered exchanges
CIE News ·
South Korea's FIU and KCSC ordered ISP bans on 27 unregistered crypto exchanges, including KuCoin and MEXC, warning users of high fees and fraud risks.
South Korea's Financial Intelligence Unit ordered domestic internet service providers on October 13, 2026, to block access to 27 unregistered offshore cryptocurrency exchanges, following reviews by the Korea Communications Standards Commission. As previously reported, authorities moved to block 27 crypto websites after warning that domestic customers could face withdrawal issues.
The enforcement list includes platforms such as KuCoin, MEXC, Phemex, BingX, and BitMart. Regulators pointed to risks of theft and fraud, highlighting that the targeted offshore platforms charge transaction fees of up to 10%, compared to an average of 0.16% on compliant domestic exchanges.
According to Crypto Briefing, the regulator stated it no longer needs to wait for confirmed consumer losses before seeking web restrictions because operating an unregistered virtual asset business is prohibited by law. The FIU advised users to promptly withdraw their assets from unregistered services, while the Digital Asset eXchange Alliance plans to assist customers with withdrawal procedures.