South Korea Cracks Down on Crypto: 14 Exchanges Blocked on Apple Store

South Korea's Financial Services Commission (FSC) has intensified its regulatory efforts by blocking 14 cryptocurrency exchange apps on the Apple App Store. This move follows a similar action taken against 17 exchanges on Google Play, aiming to curb unregistered digital asset operations within the country.

Key Takeaways

• The FSC has banned 14 unregistered crypto exchange apps, including major platforms like KuCoin and MEXC.

• This action is part of a broader crackdown on unregistered virtual asset service providers (VASPs) in South Korea.

• Non-compliance with local regulations can lead to severe penalties, including fines and imprisonment.

• The regulatory measures come as South Korea's crypto market continues to grow rapidly, with over 16 million users.

Background of the Ban

On April 11, 2025, the FSC announced the blockage of 14 crypto exchange apps on the Apple App Store, targeting platforms that were allegedly operating without proper registration as foreign VASPs. This decision is part of a larger initiative to ensure compliance with South Korea's stringent financial regulations.

The blocked exchanges include:

• KuCoin

• MEXC

• Phemex

• CoinEx

• Poloniex

• And several others

This regulatory action follows a similar ban on March 26, when Google Play restricted access to 17 unregistered exchanges, indicating a coordinated effort to enforce compliance across major app platforms.

Regulatory Framework

Under the Special Financial Transaction Information Act, all VASPs targeting South Korean users must register with the Financial Intelligence Unit (FIU). The requirements for registration include:

1. Providing services in Korean.

2. Supporting transactions in Korean won.

3. Engaging in marketing campaigns aimed at South Korean residents.

Failure to comply with these regulations can result in:

• Fines of up to 50 million won (approximately $35,200).

• Imprisonment for up to five years.

Implications for the Crypto Market

The crackdown on unregistered exchanges comes at a time when South Korea's crypto market is experiencing significant growth. As of March 2025, the number of crypto exchange users in the country surpassed 16 million, representing over 30% of the population. Industry experts predict that this number could exceed 20 million by the end of 2025.

The FIU has indicated that it will continue to work with internet service providers and mobile platforms to block access to unregistered apps and websites, aiming to prevent money laundering and protect consumers.

Conclusion

South Korea's recent actions against unregistered crypto exchanges reflect a robust commitment to enforcing compliance within the digital asset sector. As the regulatory landscape tightens, exchanges operating in South Korea will face increasing pressure to adhere to local laws, potentially influencing global crypto regulatory practices in the future. The ongoing efforts to regulate the crypto market underscore the importance of consumer protection and market integrity in an increasingly digital financial landscape.

Sources

• South Korea FSC blocks 14 crypto exchanges on Apple Store, Traders Union.

• South Korea blocks 14 crypto exchanges on Apple Store — Report, Cointelegraph.

• South Korea FIU Blocks 14 Crypto Apps on Apple Store, Cryptonews.

• South Korea Blocks 14 Cryptocurrency Exchanges on the Apple App Store, Binance.

• South Korea Now Targets Crypto Apps On Apple Google Stores, Coin Edition.
  
  
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