South Korea Blocks 27 Crypto Exchanges Including Bitmart and Kucoin
South Korea's Financial Intelligence Unit blocked 27 unregistered cryptocurrency exchanges on Tuesday, expanding enforcement beyond mobile apps to include websites. The regulator is coordinating with operators to facilitate user withdrawals through the country's domestic exchange association.
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Enforcement Action Expands
South Korea's Financial Intelligence Unit (FIU) has blocked access to 27 cryptocurrency exchanges, including Bitmart and Kucoin, according to reports Tuesday. The action represents an escalation of the country's earlier restrictions targeting unregistered mobile applications, now extending to websites operated by the same entities. The timing reflects the regulator's stated priority to prevent investor losses before complaints accumulate.
Withdrawal Process and User Access
The FIU is working with exchange operators to establish a formal withdrawal process through the Domestic Exchange Association (DAXA), according to CryptoSlate reporting. This coordination aims to allow existing users to access their funds despite the site blockades. The scope of how many users hold assets on these 27 platforms, or the total volume at risk, was not disclosed in either report.
Regulatory Context
The enforcement action reflects South Korea's ongoing effort to regulate the crypto sector after years of inconsistent oversight. Earlier restrictions targeting unregistered mobile apps set the stage for this broader website enforcement. The regulator has not published an official statement detailing the criteria used to identify and block these 27 exchanges or the timeline for the withdrawal facilitation process.
Why It Matters
For Traders
Users on the 27 blocked exchanges face immediate access restrictions; withdrawal coordination through DAXA may take days or longer, locking positions during volatile market conditions.
For Investors
South Korea's regulatory tightening signals ongoing enforcement risk for unregistered platforms; investors should verify exchange licensing status in jurisdictions where they operate.
For Builders
The FIU's use of ISP-level blocking and exchange association coordination as enforcement tools may establish a template other jurisdictions replicate for regulating non-compliant platforms.
This article is for information only and is not financial advice. Read the full disclaimer.
