South Korea Blocks Apps of Crypto Exchanges on Apple, Google Stores

South Korea’s top financial regulator has removed 14 crypto exchange apps from Apple’s App Store and 17 from Google Play, which includes major platforms like KuCoin and MEXC, as part of a crackdown on unregistered foreign operators.

The Financial Services Commission (FSC) announced Monday that the bans took effect on Google’s Play Store on March 25 and on Apple’s App Store on April 11. 

“We are closely monitoring regulatory developments across all jurisdictions, including South Korea, and will fully cooperate with any regulatory requirements,” a KuCoin spokesperson told Decrypt in an emailed statement.

“KuCoin has always prioritized its users and maintained a strong commitment to compliance. We respect the regulatory efforts of the South Korean Financial Services Commission and take such matters seriously,” they added.

MEXC did not immediately respond to a request for comment.

The apps were described as “unreported foreign virtual asset operators,” meaning they failed to register with the FSC’s Financial Intelligence Unit (FIU) before offering services to Korean users.

Under South Korean law, virtual asset service providers must register with the FIU, a division of the FSC, before doing business domestically.

Factors that trigger this requirement include having a Korean-language website, accepting payments in won, or marketing to Korean users. Violations can lead to up to five years in prison or fines of up to 50 million won (around $36,000).

Two of the exchanges had no identifiable owners, according to a list of targeted platforms on the FSC website. Poloniex and BitMart were also named. Both have yet to respond to a request to comment.

Regulators in the country are increasingly unwilling to tolerate offshore exchanges skirting alleged domestic oversight. The FSC previously took action against 16 exchanges in 2022 and six more in 2023.

In January, the country proposed plans to upgrade its crypto task force into a permanent investigative unit. If approved, the unit will build on its work against crypto-related crimes, expanding its authority and resources beyond its formation, established back in July 2023.

It also follows a series of high-profile scandals, including a civil servant accused of embezzling nearly 500 million won ($342,000) in public funds to trade crypto, some of which came from flood recovery donations. 

A former lawmaker was also recently cleared of charges after being accused of hiding crypto assets. And last week, a supposed crypto mining operation in Gwangju turned out to be a front for illegal gambling funneling over 140 million won ($95,000).

The FSC also issued a warning to users that dealing with unregistered platforms carries serious risks. Currently, 28 crypto businesses are officially registered in South Korea.

Edited by Sebastian Sinclair