South Korea has intensified its crackdown on offshore cryptocurrency exchanges operating without regulatory approval.
Authorities are restricting access to foreign trading platforms as part of efforts to strengthen oversight.
The latest measures follow years of regulatory action against exchanges serving local investors without registration. Meanwhile, domestic platforms could benefit as regulators tighten access to overseas competitors.
South Korea’s Financial Intelligence Unit (FIU) announced Tuesday that authorities will block 27 unregistered offshore crypto exchange websites.
The affected platforms include KuCoin, MEXC, Phemex, BingX, BitMart, XT.com, Bitrue, CoinW, and BTCC.
The Korea Communications Standards Commission (KCSC) approved the restrictions following deliberations on October 6 and 7.
Under the decision, authorities will shut down websites operating servers or businesses within South Korea. Overseas websites will face domestic access restrictions.
The FIU also referred 44 unregistered operators to investigators as enforcement efforts expanded.
Meanwhile, the Digital Asset Exchange Alliance (DAXA) will assist users experiencing withdrawal difficulties. The organization represents South Korea’s major cryptocurrency exchanges and guides affected investors.
South Korea expands crypto exchange restrictions after four years
South Korea’s latest restrictions follow enforcement efforts that began in August 2022.
At that time, the FIU reported 16 foreign cryptocurrency exchanges to investigators and requested website restrictions.
The targeted platforms included KuCoin, MEXC, Phemex, Bitrue, CoinW, and Poloniex. Authorities identified another six exchanges the following year.
Regulators subsequently introduced additional measures to limit access to unregistered crypto services.
In May 2024, the FIU began restricting cryptocurrency purchases through credit cards on unauthorized platforms.
By March 2025, Apple had removed 14 exchange applications from its App Store. Google Play also removed 17 applications.
Furthermore, Google Play updated its South Korean requirements in January 2026. The policy requires cryptocurrency exchanges and wallets to register with the FIU to maintain their listings.
These measures have progressively reduced the payment and distribution channels available to unregistered offshore exchanges.
Upbit and Bithumb could gain trading activity from restrictions
South Korea currently has approximately 27 FIU-registered cryptocurrency platforms, matching the number of offshore websites facing restrictions.
However, Upbit and Bithumb dominate trading activity across the domestic cryptocurrency market.
The latest enforcement measures could redirect some trading activity toward these established local exchanges.
Still, differences between domestic and offshore trading services remain significant.
Foreign exchanges offer leveraged perpetual futures contracts, attracting traders seeking derivatives exposure. In contrast, registered South Korean exchanges primarily provide spot cryptocurrency trading.
The FIU maintains that its restrictions aim to protect investors and strengthen regulatory compliance.
Authorities also expect some offshore operators to establish alternative domains to bypass website restrictions.
Consequently, the FIU plans to monitor blocked platforms and request further restrictions whenever operators launch mirror websites.
However, virtual private networks (VPNs) could still allow South Korean traders to access restricted websites.
The website blocks also do not directly close existing customer accounts on offshore platforms.
Nevertheless, combined app store restrictions and payment limitations increase the difficulty of accessing unregistered exchanges.
These barriers could encourage casual cryptocurrency traders to use regulated domestic platforms while authorities continue monitoring offshore operators.
