South Korea is reviewing the legal status of crypto businesses to ensure only approved firms engage with investors. This week, Google Play, following a regulatory directive, blocked 17 foreign crypto exchanges, including KuCoin, from being installed on Android devices in the country. Existing users will no longer receive app updates. Meanwhile, the Financial Intelligence Unit (FIU) is in discussions with Apple to remove unregistered crypto business apps from the App Store, further tightening regulatory oversight.
South Korea’s Financial Services Commission (FSC) has identified 22 crypto platforms operating without legal registration. Among them, 17 exchanges—including KuCoin, MEXC, Phemex, BitTrue, BitGlobal, CoinW, and CoinEX—have been restricted on Google Play Store, the FSC confirmed.
The Financial Supervisory Service (FSS) oversees crypto-related registrations in the country. Unregistered crypto businesses lack government protection, exposing investors to potential risks.
“Unreported business operators may be exposed to risks such as personal information leaks and hacking, and they are not subject to anti-money laundering management and supervision, so they can be abused as a money laundering route. So, there is a risk of damage to users’ money and virtual assets,” the FSC explained.
It remains uncertain whether Seoul will set a compliance timeline for the affected exchanges, and the next steps for these platforms are still unclear.
Meanwhile, South Korean authorities are engaging with Apple to restrict unregistered crypto business apps from the App Store. The FIU and the Korea Communications Standards Commission are also working together to identify and take action against domestic unregistered crypto businesses.
The FSC has warned that owners of unregistered crypto firms could face fines of KRW 50 million (roughly Rs. 29 lakh) or up to five years in prison.
“Users need to check whether the virtual asset business operator they are trading with is a reported business operator and, if it is an unreported business operator, take measures such as withdrawing their own virtual assets,” the FSC added.
The FIU publishes a list of registered crypto platforms on its homepage to help traders engage only with legally recognized firms. As of March 22, the list includes 28 officially registered platforms.
In recent months, South Korea has undertaken major steps to further define its Web3 ecosystem. South Korea recently implemented the ‘Virtual Asset User Protection Act’ to strengthen investor safeguards. The FSC will soon let corporations participate in the VDA market under FSC’s oversight.
Both, Google and Apple, have repeatedly observed risky crypto apps surfacing on Play Store and App Store. Scammers have been known to float malicious malware apps and fake wallet offerings on app marketplaces to fish for unsuspecting victims and steal from them.
