South Korea Blocks 27 Crypto Exchanges Including Bitmart and Kucoin as Regulators Expand Crackdown

Korean authorities have escalated enforcement beyond mobile apps to full website blocks, targeting unregistered exchanges before investors report losses.

South Korean regulators have blocked access to 27 cryptocurrency exchanges, including global platforms Bitmart and Kucoin, marking a significant expansion of the country's enforcement campaign against unregistered trading venues. The move extends previous restrictions from mobile applications to complete website-level blocks, preventing Korean users from accessing these platforms entirely.

The crackdown represents a proactive shift in regulatory strategy, with authorities moving to cut off access before investors report losses rather than responding after the fact. South Korea has some of the world's strictest crypto registration requirements, demanding exchanges meet rigorous anti-money laundering standards and maintain real-name banking partnerships to operate legally within the country.

Bitmart and Kucoin, both serving millions of users globally, have not secured the necessary approvals to offer services to Korean residents. The blocking action affects not just new sign-ups but also existing Korean users who may find their access to funds complicated by the sudden restriction. Neither exchange has issued a statement addressing how Korean customers will withdraw their holdings.

The timing is notable as it follows recent volatility in smaller altcoin markets where Korean retail traders are particularly active. Regulators appear concerned that unregistered platforms lack the consumer protections and financial safeguards required under Korean law, particularly around custody arrangements and insurance against exchange failures.

South Korea's Financial Services Commission has been tightening oversight since 2021, when it first introduced mandatory registration. Of the hundreds of exchanges operating before the rules took effect, only a handful including Upbit, Bithumb, Coinone, and Korbit have successfully navigated the approval process. The new blocks suggest authorities are now actively hunting down non-compliant platforms rather than waiting for them to apply.

For Korean crypto investors, the action creates immediate practical challenges. Funds held on blocked exchanges may require VPN access to withdraw, and some platforms may freeze accounts from restricted jurisdictions entirely. The enforcement also signals that regulators are coordinating with internet service providers to implement technology-level blocks, a capability that could be expanded to other platforms in future sweeps.

The development comes as South Korea weighs further regulatory changes, including potential rules around market makers following liquidity incidents earlier this year. Industry observers expect the list of blocked exchanges to grow as regulators continue identifying unregistered operators serving Korean customers through offshore entities.