South Korea Bans 14 Crypto Apps
South Korea Bans 14 Unregistered Crypto Apps
South Korea's Financial Services Commission (FSC) has banned 14 unregistered cryptocurrency exchange applications from the Apple App Store, following a similar move by Google Play. This decisive action is part of the government's ongoing efforts to regulate the cryptocurrency market and protect investors.
The banned apps, including prominent names like KuCoin and MEXC, failed to meet South Korean legal requirements for registration. This crackdown aims to curb illicit activities, such as money laundering, and safeguard the country's 16 million crypto users (approximately 30% of the population).
- Key Action: 14 unregistered crypto exchange apps banned from Apple App Store.
- Reason: Failure to comply with South Korean registration requirements.
- Impact: Increased regulatory scrutiny on the South Korean crypto market.
Why South Korea is Targeting Crypto Apps
South Korea's Financial Intelligence Unit (FIU) mandates registration for all Virtual Asset Service Providers (VASPs) operating within the country under the Act on Reporting and Use of Specific Financial Transaction Information. Unregistered exchanges pose significant risks, including money laundering and scams.
The FSC's April 14th report explicitly identified these platforms as "unregistered overseas virtual asset operators." Non-compliance carries severe penalties, including up to five years imprisonment and a maximum fine of 50 million won (approximately $35,200).
This is not the first such action; a total of 28 unregistered platforms have been blocked since the beginning of 2022. This recent wave of enforcement reflects the growing concerns over the rapid expansion of the South Korean crypto market, projected to reach 20 million users by year-end.
A Growing Crypto Market Under Scrutiny
Despite increased government oversight, South Korea's cryptocurrency market continues to thrive. The FSC and FIU are committed to balancing innovation with robust security and stability, focusing on anti-money laundering compliance and investor protection.
The Apple App Store restrictions prevent users from installing new apps and updating existing ones. While current users can still access the platforms, the lack of updates poses operational challenges. KuCoin, for example, is actively working to address compliance issues. Google Play previously blocked 17 similar apps, demonstrating a coordinated regulatory approach.
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