Google Play Blocks 17 Unregistered Crypto Apps in South Korea
In a sudden development, South Korea’s Financial Intelligence Unit (FIU) has successfully pushed Google LLC to block domestic access to 17 unregistered crypto apps on Google Play.
This action, effective from March 25, 2025, targets foreign crypto exchanges, including KuCoin and MEXC, which have been operating without proper registration under South Korean law.
As a result, new users will be unable to install these apps, while existing users will not receive updates.
The crackdown is rooted in the Specific Financial Transaction Information Reporting and Use Act, which mandates that foreign virtual asset service providers (VASPs) that cater to South Korean customers register with the FIU. Failure to comply can result in penalties, including up to five years in prison or a fine of 50 million won.
South Korea’s Expanding Regulatory Reach
South Korea’s push against unregistered foreign crypto exchanges is not new. In 2022, the FIU identified and restricted 16 such platforms, followed by an additional six in 2023.
Under South Korean law, foreign exchanges operating domestically must meet specific criteria, such as offering a Korean-language website, running promotions targeting local investors, or supporting transactions in Korean won. Exchanges failing to meet these requirements are considered unregistered and are subject to enforcement actions.
The FIU, in collaboration with financial and cybersecurity agencies, continues to monitor and restrict these platforms, limiting their reach in the country. The regulatory actions have had a noticeable impact on the market. KuCoin Token (KCS), for example, saw a minor price drop of 0.3% in the past 24 hours.
The crackdown also extends beyond Google Play, with authorities working on blocking website access and coordinating with financial institutions to prevent transactions with unregistered platforms. In fact, according to a report on March 21, authorities are cracking down on unregistered overseas crypto exchanges that continue to operate illegally in the country.
The FIU is investigating platforms like BitMEX, KuCoin, CoinW, Bitunix, and KCEX for targeting local investors without registering as VASPs under the Specific Financial Information Act. Meanwhile, South Korean prosecutors have launched a separate investigation into Bithumb, one of the country’s largest exchanges, over allegations that company funds were misused to secure an apartment lease for its former CEO, Kim Dae-sik.
Investigators recently raided Bithumb’s headquarters as part of the probe. These developments come amid a surge in crypto activity in South Korea, where the number of investors surpassed 15 million and crypto exchange deposits doubled in late 2023.
Implications for the Crypto Industry and Future Trends
The restriction of unregistered crypto apps on Google Play resulted from a growing trend in government intervention within the crypto space. South Korea’s aggressive regulatory approach aims to establish a safer trading environment while curbing illicit financial activities linked to cryptocurrencies.
The FIU is actively consulting with Apple Korea and other regulatory bodies to implement similar measures across different platforms. If successful, this could further limit unregistered exchanges’ access to South Korean users, effectively cutting off a significant portion of their customer base.
For South Korean crypto traders, the FIU has made a list of registered operators available on its website, urging users to withdraw funds from unregistered exchanges and transition to compliant platforms. Moving forward, crypto exchanges may be forced to reevaluate their operational strategies. Those seeking access to South Korean markets will likely need to enhance compliance efforts and secure proper licensing to meet regulatory requirements.
