South Korea’s Financial Intelligence Unit (FIU), under the Financial Services Commission, announced on October 13, 2026, that domestic access would be blocked—or services terminated—for the websites of 27 unregistered virtual asset service providers. The list includes major offshore platforms such as KuCoin, MEXC, Phemex, XT.com, Bitrue, CoinW, Poloniex, BTCC, BingX, BitMart, DigiFinex, and others.

The decision followed reviews by the Korea Communications Standards Commission on October 6 and 7. It expands prior restrictions that already limited new downloads, installations, and updates of related apps on Apple’s App Store and Google Play. Operators with servers or management based in South Korea face service termination, while those based overseas face access blocks. Authorities indicated they will monitor and block alternative URLs that platforms may use to continue operating.

Under the Act on Reporting and Using Specified Financial Transaction Information, virtual asset service providers must obtain Information Security Management System (ISMS) certification and register with the FIU to operate legally in South Korea. Unregistered operators that target Korean users—through Korean-language interfaces, local marketing, or support for Korean won (KRW) transactions—violate the law. Penalties can reach up to five years in prison or a fine of 50 million won. The FIU has referred a cumulative 44 unregistered operators to investigative authorities. Only about 27–28 virtual asset businesses are currently lawfully registered.

The FIU framed the website blocks as a proactive measure to prevent user harm, money laundering, and the use of platforms for concealing criminal proceeds before specific victim complaints arise. Unregistered operators lack government oversight of anti-money laundering systems and user asset protections, raising risks of data leaks, hacks, and fraud. Registered exchanges have also been instructed not to facilitate transfers of virtual assets to unregistered platforms, and restrictions on credit-card purchases through such operators have been in place since 2024.

Authorities acknowledged that the website blocks could complicate withdrawals for existing users. Guidance for affected users is expected through the Digital Asset Exchange Association (DAXA), the industry body of registered Korean exchanges. The action forms part of a broader enforcement push against offshore platforms serving Korean nationals without proper registration and ISMS certification, shifting from app-store limits to broader web-level restrictions.