South Korea Orders Block on 27 Crypto Exchanges, Including KuCoin, BitMart and MEXC

South Korea orders website blocks for 27 cryptocurrency exchanges, including KuCoin, BitMart and MEXC, over anti-money laundering registration requirements.

South Korea has ordered a block on 27 cryptocurrency exchanges, including KuCoin, BitMart and MEXC, citing their failure to register under the country's anti-money laundering regulations, according to Coin Bureau. The move will restrict access to the platforms for South Korean users and could make it more difficult for existing customers to withdraw their funds.

The Financial Intelligence Unit (FIU), South Korea's financial intelligence authority, said the affected platforms had not completed the registration required under the country's anti-money laundering law. As a result, their websites will be blocked for users in South Korea.

The action puts users of the named exchanges at the center of a regulatory enforcement measure focused on compliance with South Korea's anti-money laundering framework. However, the announcement does not establish that all 27 platforms have been accused of the same additional violations beyond the reported registration failure.

Withdrawal Access Becomes a Key Concern

Beyond the website restrictions, existing customers could face greater difficulty withdrawing funds held on the affected platforms. Coin Bureau reported that users may encounter withdrawal challenges as the blocking measures take effect, raising concerns about access to assets for people who continue to hold balances on the exchanges.

The reported restrictions make the process of recovering funds an important consideration for affected customers. While the website blocks are intended to limit access for Korean users, the source did not specify an implementation date, provide a breakdown of the 27 exchanges, or quantify the funds potentially affected.

KuCoin, BitMart and MEXC are among the platforms specifically identified in the report. The three exchanges are part of a wider group of 27 platforms targeted by the South Korean authorities. The available information does not indicate that the three named exchanges face separate penalties beyond the reported blocking action.

DAXA to Help Users Withdraw Funds

South Korean regulators plan to help affected customers retrieve their funds through the Digital Asset Exchange Alliance (DAXA), the country's exchange alliance. The arrangement is intended to provide a route for users seeking to withdraw assets from the affected platforms despite the access restrictions.

DAXA's involvement is particularly relevant for customers who may have difficulty accessing their accounts or completing withdrawals after the websites are blocked. However, the source did not provide details about how the withdrawal assistance will operate, whether specific procedures have been established, or how long the process could take.

The reported action combines restrictions on access to 27 cryptocurrency exchanges with plans to assist users in recovering their funds. According to Coin Bureau, the Financial Intelligence Unit's stated basis for the move is that the platforms failed to register under South Korea's anti-money laundering law. KuCoin, BitMart and MEXC are among the exchanges named in the report, while DAXA is expected to support affected users seeking to withdraw their assets.

Writer: Victoria Hale
Technology & Blockchain Writer

Victoria Hale writes about blockchain technology, digital infrastructure, and the intersection of emerging technologies with finance. Her articles explore how new protocols and systems are shaping the evolving digital economy.

She prioritises clarity and accuracy when explaining technical developments to a general audience.