South Korea Blocks Web Access to 27 Offshore Crypto Exchanges
South Korean regulators approved blocking domestic web access to 27 unregistered offshore crypto exchanges, including MEXC and KuCoin. The measure expands enforcement from app stores to network-level IP blocking following a request from the Financial Intelligence Unit. Authorities plan to coordinate withdrawal procedures for affected users through DAXA.
South Korea’s October 13, 2026 approval targets 27 offshore crypto websites, including MEXC, KuCoin, Phemex, XT.com, and Bitrue. The KCSC acted after the FIU requested network-level blocking, extending earlier app-store restrictions to IP-level web access.
Under local rules, unregistered virtual asset service providers cannot legally serve Korean residents. The FIU can request access cutoffs immediately without first obtaining a court order or proving consumer harm. It has referred 44 firms to law enforcement, while withdrawal guidance is planned with DAXA. The market reached $449.1 billion, up 12.3% from Jan 2025 to Jun 2026.
The block could disrupt South Korean users who rely on these offshore platforms, especially retail traders seeking services unavailable locally. They may face difficulty accessing accounts or moving funds, though coordinated withdrawal guidance could reduce harm. Tighter controls may push activity toward registered domestic venues or alternative routes, potentially affecting market liquidity and user choice. Regulators’ tracking of mirror domains may shape how offshore platforms approach Korean residents.