South Korea Cracks Down: Google Play Bans 17 Unregistered Crypto Exchanges

In a significant move to regulate the cryptocurrency market, Google Play has blocked access to 17 unregistered overseas crypto exchanges operating within South Korea. This action, taken at the behest of the country’s financial regulators, aims to curb illegal activities and protect domestic users.

The Financial Intelligence Unit (FIU) of the South Korean Financial Services Commission (FSC) previously announced its intention to sanction operators failing to comply with reporting requirements under the Specified Financial Information Act. This act mandates virtual asset service providers (VASPs) to register and report their activities to the authorities.

Following the FIU’s announcement, the FSC published a list of 22 unregistered platforms, 17 of which were subsequently removed from the Google Play store. This action prevents new downloads and updates, effectively limiting access for Korean users.

Impact and Affected Exchanges

The ban directly impacts several prominent exchanges, including KuCoin, MEXC, Phemex, XT.com, Biture, CoinW, CoinEX, ZoomEX, Poloniex, BTCC, DigiFinex, Pionex, Blofin, Apex Pro, CoinCatch, WEEX, and BitMart. These exchanges are now unavailable for new downloads on Google Play, and existing users face limitations on app updates.

The FSC anticipates this measure will significantly reduce money laundering through crypto assets and protect local users from potential financial harm. Furthermore, coordination is underway with Apple Korea and the Korea Communications Standards Commission (KCSC) to expand the ban to the App Store and broader internet access.

KuCoin, in a statement, acknowledged its awareness of the regulatory developments and highlighted its commitment to compliance. However, the exchange did not provide specific details regarding its future plans in South Korea.

Wider Regulatory Scrutiny in South Korea

This action is part of a broader crackdown on unregistered and potentially illicit activities within South Korea’s crypto market. Recent investigations and raids on major exchanges underscore the government’s determination to enforce regulatory compliance and protect investors.