South Korea Blocks 27 Offshore Crypto Sites as Withdrawals Get Harder

South Korea's Financial Intelligence Unit approved blocking domestic access to 27 websites run by unregistered crypto operators, a decision it announced on Oct. 13.

Which platforms get cut off

The list includes KuCoin, MEXC, Phemex, Bitrue, CoinW, BTCC, BitMart, BingX, XT.com and Poloniex. The Korea Communications Standards Commission reviewed the sites on Oct. 6 and 7 before clearing the blocks. Platforms with servers or operators inside the country must shut down domestic service, while overseas-hosted sites simply get cut off from Korean users.

Why the FIU went after them

Every crypto business serving South Korea must register with the FIU, which means clearing requirements such as Information Security Management System certification. Foreign firms are covered too if they run Korean-language services, market to local users or support won payments. Operating without that registration is a criminal offence, carrying up to five years in prison or a 50 million won fine. A June joint probe by the Digital Asset eXchange Alliance found the flagged exchanges charged average fees of 1.5% to 10%, against 0.16% at South Korea's five major won exchanges — as much as 62 times higher.

The part users should watch

The FIU admits the blocks could make withdrawals harder for people with funds still parked on those platforms, and says it will work with the operators to provide guidance through DAXA. That is the real friction here. App-store blocks stopped new downloads; website blocks remove the most obvious way for an existing user to pull assets out. Authorities have already referred 44 illegal operators to investigators and, since May 2024, have restricted card purchases through unregistered platforms. Earlier rounds hit 14 apps on Apple's App Store and 17 on Google Play, so this looks like escalation rather than a one-off.