Google Play Blocks 17 Foreign Crypto Exchanges in South Korea: KuCoin, MEXC, Phemex Among the Affected – How Will This Impact the Market?

South Korean Government Targets Foreign Crypto Exchanges with New Restrictions

The South Korean government's recent move to clamp down on foreign crypto exchanges is causing ripples throughout the industry.

Google Play has now restricted access to 17 unregistered exchanges at the request of the Financial Intelligence Unit (FIU).

Users in South Korea are now unable to install or update apps from platforms such as KuCoin, MEXC, Phemex, and several others, significantly hindering their operations.

Additionally, these exchanges are blocked for users accessing from Korean IP addresses, and Apple apps will also be restricted.

Translation:

At the request of the Financial Services Commission, Google Korea has blocked domestic access to the apps of 17 foreign virtual asset service providers, including KuCoin and MEXC, that have been conducting unreported business targeting Koreans.

Accordingly, new installations of the app are not possible, and existing users will not be able to update the app. Apple apps and Internet sites will also be blocked.

New Restrictions Impact Foreign Exchanges

The newly imposed restrictions, effective since 25 March 2025, target popular foreign crypto exchanges that have failed to register with the South Korean authorities.

With the support of Google, these platforms, including KuCoin, MEXC, Phemex, CoinW, Poloniex, and BitMart, are now off-limits for South Korean users.

The inability to update or install these apps leaves many customers unable to access new features or engage with the platforms, curbing their overall growth in the region.

Impact on Users and Platforms

Given that foreign exchanges have gained popularity among local traders due to their broader range of services and lower fees, the restrictions are expected to create frustrations for users.

Without access to updates or the ability to install new apps, users may be forced to look for alternatives, potentially turning to exchanges that comply with South Korean regulations.

Coinone, Bithumb, Korbit, and Upbit are the four leading crypto exchange platforms in South Korea.

As the regulations intensify, the South Korean government appears determined to curb the influence of foreign exchanges that operate outside the country’s regulatory framework.

These restrictions could significantly disrupt the operations of platforms such as KuCoin, MEXC, Phemex, CoinEX, and others.

The limitation on updates will affect existing users, and the inability to install new apps will prevent fresh sign-ups.

Government’s Ongoing Efforts to Regulate Crypto Market

The move reflects the South Korean government's continued push to regulate the crypto industry more tightly.

According to an official from the FIU, the government is in discussions with the Korea Communications Commission to explore further measures to restrict access to overseas exchanges catering to domestic investors.

The official highlighted that these efforts are part of a broader strategy to tighten control over the market.

FIU official said,

“We are currently reviewing measures to block access to undeclared overseas exchanges that provide services to domestic investors in consultation with the Korea Communications Commission.”

Global Reactions Stirred by Increased Regulation

The latest action has sparked concern within the crypto community globally.

As authorities continue to scrutinize foreign exchanges, the pressure is mounting on platforms that rely on South Korea’s market for growth.

With growing regulatory pressure, the situation is evolving rapidly, leaving many wondering how other governments may follow suit in tightening their own crypto regulations.

The South Korean government's determination to regulate crypto more strictly is apparent, as the FIU’s actions signal that this could be just the beginning of a broader crackdown on foreign crypto platforms operating within the country.