The Financial Intelligence Unit (FIU) of South Korea has finally shifted its focus from mobile screens to web browsers. Recently, the FIU and relevant review institutions decided to implement more thorough restrictions on 27 overseas virtual asset service providers (VASPs) that have not completed registration in South Korea: not only will they continue to limit the download, installation, and updates of applications, but they will also directly block or terminate their website services within South Korea. Among the named platforms are KuCoin, MEXC, as well as BingX, Phemex, BitMart, and others, which are significant exchanges in the global market. Previously, they could bypass the app store blockade through their websites; now that route has also been targeted. Since South Korea officially launched the VASP declaration and registration system around 2021, unregistered platforms have been gradually squeezed out of mainstream access points. This upgrade from the app side to the website side signifies that regulatory tolerance for "gray services" is rapidly approaching zero. More critically, the FIU has reported a cumulative total of 44 unregistered VASPs to investigative authorities and publicly stated that they will continue to block alternative URLs and mirror sites for these platforms. Under the dual pressure of "cutting off access" and "handing over investigations," the pathways for South Korean users to deposit and withdraw funds are being forcibly rearranged, while the positioning of overseas platforms represented by KuCoin and MEXC in the global trading landscape is quietly being rewritten by this seemingly "local" regulatory hand from South Korea.

First Blocking Apps then Websites: South Korean Regulation Tightens

South Korea's blockade of unregistered overseas VASPs has not been an overnight decision but has gradually spread from mobile screens. After the VASP declaration and registration system was implemented, the FIU first targeted the application layer, imposing restrictions on the download, installation, and updates for unregistered platforms, effectively removing them from mainstream app stores and official update channels. During that phase, it felt more like a "compliance reminder" through technical means—while you could temporarily retain existing users, if you wanted to continue appearing on South Korean users' phones, you had to register and fulfill anti-money laundering obligations, or else you would be slowly squeezed out of the local application ecosystem.

Now, however, regulation has simply cut off access at the source, moving the frontline from apps to browsers. The FIU and relevant review institutions decided to block website access or terminate services for 27 overseas VASPs that have not registered in South Korea. Technically, it no longer matters which country they are from or how large their traffic is; the only criterion is: they are unregistered in South Korea. The blocking is targeted at specific unregistered entities, not all overseas platforms, and this "named" technical blockade signifies a shift in attitude from "encouraging compliance" to "refusing access." More critically, the FIU has publicly committed to continuing to block alternative URLs and mirror sites for these platforms to prevent them from returning to South Korean cyberspace via new domains or redirect links. This suggests that the blockade is no longer a one-off action but will evolve into a normalized dynamic blocking mechanism, keeping the technical pathways between unregistered overseas platforms and South Korean users under constant monitoring and blocking pressure.

KuCoin and MEXC Named: Unregistered Platforms Become High-Risk Zones

Among the 27 unregistered VASPs listed in the blockade, the FIU and the media have specifically named global trading platforms such as KuCoin, MEXC, BingX, Phemex, and BitMart. These platforms have already established high recognition in the international market and are familiar names among many South Korean retail investors and professional players. Because of this, when regulators chose to implement "domain-level" censorship on these platforms, this action itself transcended technical boundaries and carried clear symbolic significance: it was not targeting a few fringe websites but directly aimed at mainstream overseas players that refuse to register within the Korean system, categorizing them as a whole into a high-risk zone.

From a regulatory perspective, there is a common point among the platforms being named this time: none of them have completed the VASP declaration and registration in South Korea. Since the VASP system was officially established around 2021, any platform providing services to local users must register with the FIU and fulfill anti-money laundering obligations. Within this framework, "unregistered overseas VASPs" are automatically classified as illegal service providers. This round of blockade is only the first layer; the FIU has simultaneously reported a total of 44 unregistered VASPs to investigative bodies, implying that unregistered platforms will not only be cut off from access channels but may also be subject to criminal or administrative investigations at any time. For other overseas trading platforms still waiting and watching, the signal being released is very clear: either enter South Korea's regulatory framework and accept comprehensive constraints of VASP rules, or accept the reality of being squeezed out of the market due to technical blockade and legal scrutiny.

South Korean Retail Investors Blocked: Where Do Assets and Trades Go?

For many retail investors in South Korea, the change occurred during a routine login action: the KuCoin and MEXC Apps, which were opened every morning and evening, suddenly failed to connect, and trying to open the website on a computer only yielded the message "Cannot access this site." With the blockade expanding from app stores to websites, the 27 unregistered VASPs being named have virtually disappeared from the usual network visibility within South Korea. For users who have already deposited funds on these platforms, their assets "are still there," but the blocked entry means they cannot easily place orders or rearrange portfolios, nor can they timely initiate recharge or withdrawal instructions, interrupting their daily trading rhythm where many can only passively wait for subsequent announcements and updates from the platforms.

In reality, some "heavy users" will not stop there but will immediately attempt to use VPNs, proxies, or mirror sites to "retrieve" their trading pages. However, under the background that the FIU has classified unregistered platforms as illegal service providers and has clearly stated they will continuously block alternative URLs and mirror sites, this way of bypassing runs the risk of pushing individuals into a gray compliance zone: if future investigations into unregistered VASPs extend to users, the related transaction records could shift from convenient tools to incriminating evidence that needs explaining. Meanwhile, frequently logging into accounts through unknown mirror links also adds security risks for phishing or account theft; once incidents occur, it is challenging to seek clear complaint and remedy paths, as one could on compliant domestic platforms. In contrast, established local exchanges such as Upbit and Bithumb, while offering fewer options for altcoins, contract leverage, and multi-chain assets compared to platforms like KuCoin and MEXC, do possess a more stable and clear compliance identity under the current regulatory pressure. Some users of the locked platforms may reluctantly move their main funds back to these local exchanges for the sake of certainty; however, for those accustomed to high leverage and pursuing long-tail assets, when they are unwilling to return to "compliant yet monotonous" local exchanges, their funds might easily extend towards VPNs and proxies, sliding into corners of regulatory obscurity. The extent of the risk in this path will be one of the hardest variables to predict for the South Korean market in the coming period.

44 Platforms Transferred to Investigations: Cleaning Action Enters Deep Waters

If blocking apps and websites merely means closing the "door," transferring platforms to investigative authorities signifies the start of questioning whether "the people behind the door" should bear responsibility. As of now, the FIU has reported a total of 44 unregistered VASPs to investigative bodies; however, this round of technical blockade involves only 27, and the difference in numbers outlines a more nuanced picture of law enforcement: some platforms have entered the case filing and investigation stage and have not yet been cut off from all traffic; while others simultaneously face both technical blockades and investigation risks, being squeezed from user access and legal perspectives. Coupled with the FIU's clear commitment to continuing to ban alternative URLs and mirror sites, this rhythm of "investigating one batch, blocking another, and monitoring yet another" has surpassed the pace of a motion-style cleanup and resembles a long-term risk cleanup project.

On this continuously tightening regulatory track, a reshaping of the market landscape is almost an inevitable result. Small to medium overseas platforms lacking resources and user numbers will struggle to find a survival space between the high local compliance costs and uncertain investigative pressures, with the likelihood of passively exiting the visibility of South Korean users rising. Conversely, already registered local platforms, leveraging their compliant identities, are naturally better positioned to absorb the trading volumes freed up. As for major international platforms like KuCoin and MEXC that have already been named, they face a tough choice: either positively evaluate the pros and cons of applying for registration in South Korea and fulfilling anti-money laundering obligations, or accept the outcome of being marginalized in this market. This cleaning battle, transitioning from blocking access points to questioning responsibility, is just beginning to reveal its contours in terms of how much it will reshape the platform landscape accessible to South Korean investors.

Inside and Outside the City: The Next Steps for Global Exchanges

This round of dual blocking from apps to websites in South Korea, combined with the dynamic blockade of mirror sites and the investigation transfer of 44 unregistered VASPs, effectively packages "technical disconnection + legal accountability" into a market access blockade scheme. This city-like regulation is likely to be adopted as a ready-made template by more judicial jurisdictions with strong regulatory attitudes. For global centralized exchanges, the options are being forced to narrow: either accept licensing, anti-money laundering, and investor protection requirements in key markets like the EU, the US, Japan, and South Korea, integrating themselves into local systems; or exit high-pressure markets entirely, betting their traffic on regions where regulation has not fully formed; or maintain "unlicensed operations," relying on technical circumvention and gray area services for local users while facing incremental risks of being blocked, reported, or even held accountable. In South Korea, the next steps in regulation can almost be anticipated: there will be more rigorous enforcement of KYC/AML requirements, mandating registered local platforms to take clearer responsibility for identifying suspicious funds and intercepting high-risk cross-border flows, as well as institutionalizing cooperation with foreign regulators and platforms. This means unregistered overseas platforms will be continuously excluded from mainstream access channels, and South Korean users and liquidity will be redistributed between locally licensed entities and a few still accessible international platforms. Such a reshuffle may also signal a new round of central migration direction in the global cryptocurrency trading landscape.

Join our community, let’s discuss and become stronger together!
AiCoin exclusive Hyperliquid benefits: https://app.hyperliquid.xyz/join/AICOIN88
AiCoin exclusive Aster benefits: https://www.asterdex.com/en/referral/9C50e2
On-chain Telegram community: https://t.me/AiCoinWhaleData
On-chain community: https://www.aicoin.com/link/chat?cid=N6OVMor5g
AiCoin on-chain Twitter: https://x.com/aicoinwhaledata

免责声明：本文章仅代表作者个人观点，不代表本平台的立场和观点。本文章仅供信息分享，不构成对任何人的任何投资建议。用户与作者之间的任何争议，与本平台无关。如网页中刊载的文章或图片涉及侵权，请提供相关的权利证明和身份证明发送邮件到support@aicoin.com，本平台相关工作人员将会进行核查。