South Korea Blocks Unregistered Crypto Exchanges on Apple & Google Platforms
South Korea’s FSC has banned 31 crypto exchange apps, including KuCoin and MEXC, from Apple and Google stores for failing to register with local authorities. The move is part of a broader crackdown on unregulated foreign crypto platforms.
South Korea's financial regulator, the Financial Services Commission (FSC), has ratcheted up its enforcement against unregistered foreign crypto platforms by deleting their apps from major stores. To date, March 25 on Google Play and April 11 on Apple's App Store, 31 crypto exchange apps—top players such as KuCoin, MEXC, Poloniex, and BitMart—have been deleted.
These sites were regarded as "unreported virtual asset operators" due to their non-registration with the Financial Intelligence Unit (FIU), a vital department under the FSC. According to South Korean law, any crypto service provider aiming to serve Korean consumers must be FIU-registered.
Critical indicators of registration include having a Korean-language interface, supporting Korean won, or marketing services to Korean customers. Operating without registration can incur up to five years of imprisonment or a fine of up to ₩50 million (c. $36,000).
A KuCoin representative stated the firm respects South Korea's regulatory push and is devoted to compliance. MEXC has yet to release a statement. In the meantime, two unidentified platforms were marked with no discernible ownership, reflecting the growing concern about anonymous operators.
South Korea has increased enforcement in recent years, previously targeting 16 exchanges in 2022 and another 6 in 2023. There are also plans to make the nation's crypto crime task force permanent in order to further strengthen efforts to investigate digital asset-related fraud and abuse.
This move follows several national crypto scandals, including a government official accused of embezzling flood relief funds for crypto trading, and a fake mining scheme in Gwangju that was actually an illegal gambling ring.
The FSC urged Korean users to avoid unregistered exchanges due to high financial risks. Currently, 28 crypto platforms are legally registered to operate in the country.
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