TLDR
- South Korea’s FSC removed 14 unregistered crypto apps, including KuCoin and MEXC, from Apple’s App Store on April 11.
- The FIU is enforcing laws requiring foreign crypto platforms to register before serving South Korean users.
- Offending platforms face up to five years in prison or ₩50 million fines for non-compliance.
- Google also delisted 17 unregistered crypto apps from its Play Store in March, including KuCoin.
- South Korea plans further enforcement to block non-compliant platforms and strengthen digital asset regulation.
South Korea’s Financial Services Commission (FSC) has blocked 14 unregistered crypto platforms from Apple’s App Store. The action began on April 11 at the request of the Financial Intelligence Unit (FIU).
According to the FSC, the targeted platforms, including KuCoin and MEXC, were operating without proper registration. The apps are no longer available for new downloads, and existing users can no longer receive updates.
The FIU’s decision is part of South Korea’s growing regulatory enforcement against virtual asset service providers (VASPs) that operate without registration.
Under current laws, foreign platforms must register with the FIU before offering services to South Korean users. Failure to comply is a criminal offense, carrying penalties of up to five years in prison or a fine of 50 million Korean won ($35,200).
Google Play Store Took Similar Measures in March
Before the Apple Store ban, Google took similar actions. On March 25, Google removed 17 unregistered crypto applications from its Play Store.
That enforcement also included KuCoin and MEXC, among other platforms flagged for operating without proper authorization. The FSC has identified 22 foreign exchanges operating without registration, with most already restricted on mobile platforms.
The FIU has committed to expanding the list of blocked entities and is coordinating with app stores to limit access to services that do not meet the country’s compliance standards.
The regulator also plans to continue monitoring these operators’ websites and other digital access points.
Penalties for Operating Without Registration
The FIU emphasized that conducting crypto-related business without registration is criminal under South Korean law. This includes platforms involved in trading, brokerage, management, and custody of digital assets.
The requirement aligns with anti-money laundering (AML) and know-your-customer (KYC) policies, ensuring that platforms maintain transparency and security.
Operators failing to register risk serious legal consequences. In addition to being removed from app distribution platforms, they may also be subjected to financial penalties and possible criminal prosecution. The FSC stated that such actions are meant to prevent illegal activities, safeguard user funds, and protect the financial market.
South Korea Increases Regulatory Pressure on the Crypto Sector
Removing unregistered platforms from major app stores is part of a broader initiative by South Korean regulators to secure the digital asset ecosystem. The FIU is actively advising registered exchanges to avoid interaction with non-compliant platforms.
Law enforcement authorities have been notified, and further investigations into the operations of these entities are expected.
Meanwhile, South Korea is trying to support institutional access to digital assets. Local banks and licensed crypto exchanges prepare to serve corporate clients, anticipating policy changes that may allow broader investment opportunities.
However, unregistered operators remain under scrutiny and will continue to face enforcement actions if they attempt to bypass local regulations.
South Korea’s decision to block access to unregistered crypto exchanges via Apple and Google platforms underscores its strict approach to digital asset regulation.
The country aims to protect users and maintain regulatory standards by coordinating with global tech companies. The ongoing crackdown signals that foreign crypto operators must prioritize compliance to support access to South Korean markets.
