South Korea has blocked 14 unregistered crypto apps from Apple’s App Store, intensifying its crackdown on unauthorized foreign exchanges.
The Financial Intelligence Unit (FIU) confirmed that global exchanges like KuCoin and MEXC were among the apps blocked for serving South Korean users without proper registration.
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The FSC said these platforms didn’t register as required by South Korean law, even though they were targeting local traders, thus breaking the country’s regulatory requirements.
Apple Korea blocked new user access and froze updates to the apps at the FIU’s request. The move makes it impossible for new users to install the apps and follows a similar request to Google in late March to restrict 17 unregistered crypto apps on the Play Store.
South Korea Intensifies Crypto Crackdown
South Korea has some of the toughest crypto regulations globally, and authorities are becoming more forceful in enforcing them.
According to the Specific Financial Transaction Information Reporting and Use Act, any foreign virtual asset service provider (VASP) operating in the country must register with the Financial Intelligence Unit (FIU).
National law requires crypto exchanges serving South Korean users to be registered, support Korean language, handle transactions in Korean won, and conduct local marketing.
Non-compliant platforms face fines up to 50 million won ($36,500) and prison terms of up to five years.
The FSC stressed that this move is designed to prevent financial crimes like money laundering and safeguard investors from fraud.
The FIU is investigating foreign exchanges like CoinW, Bitunix, BitMEX, and KCEX for operating illegally in South Korea.
The FSC has published a list of registered VASPs on its official website, encouraging users to verify compliance before trading.
On the Flipside
- It’s not the first time South Korean authorities have taken a tough stance on foreign crypto exchanges. In 2022, the FIU blocked 16 unregistered platforms, followed by another six in 2023.
Why this matters
South Korea’s intensified crackdown on unauthorized crypto exchanges could set a global precedent. As one of Asia’s largest crypto markets, its regulatory decisions often influence neighboring regions.
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