Access to 17 Unregistered Exchanges Restricted by Google Play

At the request of South Korean regulators, Google Play has restricted access to 17 unregistered foreign cryptocurrency exchanges, including KuCoin and MEXC, that catered to local users.

This action, effective 25 March, is part of South Korea’s broader regulatory efforts to protect investors and enforce compliance within the crypto industry.

On 21 March, the Financial Intelligence Unit (FIU) of the Financial Services Commission (FSC) signalled potential sanctions against operators failing to report to regulators, as required by the country’s Specified Financial Information Act.

The FIU, in coordination with the Korea Communications Standards Commission (KCSC), explored methods to block access to these exchanges.

By 26 March, the FSC confirmed that 17 of 22 unregistered platforms were removed from Google Play, preventing new downloads and updates, and restricting access for existing users.

These platforms violated South Korea’s legal framework by targeting local traders without proper registration.

The FSC has published a list of 22 foreign cryptocurrency exchanges, with 17 of them highlighted as blocked.

South Korea Expects Restriction to Combat Money Laundering

The FSC has confirmed that 17 foreign cryptocurrency exchanges, including KuCoin, MEXC, and Phemex, have been restricted on the Google Play Store.

As a result, these platforms will no longer be available for new users to download, and existing users will be unable to receive app updates.

This move is part of South Korea’s broader regulatory efforts to combat money laundering and mitigate risks to local investors.

The affected exchanges also include KuCoin, MEXC, Phemex, XT.com, Biture, CoinW, CoinEX, ZoomEX, Poloniex, BTCC, DigiFinex, Pionex, Blofin, Apex Pro, CoinCatch, WEEX and BitMart.

The FIU is collaborating with Apple Korea and the KCSC to further restrict access through internet and App Store channels.

KuCoin, which has previously emphasized its commitment to compliance for sustainable crypto growth, has yet to outline its plans for adhering to South Korea's regulations.

South Korea’s Harsh Crypto Regulations

South Korea has established itself as a global leader in enforcing stringent cryptocurrency regulations.

Under the Specific Financial Transaction Information Reporting and Use Act, foreign virtual asset service providers (VASPs) must register with the country’s FIU to operate legally.

Non-compliance can lead to severe penalties, including hefty fines and imprisonment.

The FSC stresses that these measures aim to combat financial crimes, such as money laundering, and safeguard local investors from fraud.

Authorities have outlined criteria for identifying illegal operations, including the use of a Korean-language website, marketing to local users, and supporting transactions in Korean won.

This latest crackdown, which follows similar actions in 2022 and 2023, signals a heightened commitment to regulating the crypto sector.

While these measures may appear restrictive, they could foster a more stable environment that attracts institutional investors seeking regulatory clarity.

South Korea’s efforts to delay taxing crypto investments further indicate a balanced approach, aiming to encourage growth while ensuring robust investor protections.