South Korea Blocks Access to 17 Unregistered Cryptocurrency Exchanges

South Korea’s Financial Intelligence Unit has directed Google to restrict domestic access to 17 unregistered cryptocurrency exchange applications on the Google Play Store. Effective March 25, users in South Korea are unable to install or update apps from platforms including KuCoin, MEXC, Phemex, Poloniex, and BitMart.

The FIU’s action targets foreign virtual asset service providers operating without proper registration, as mandated by the Act on Reporting and Using Specified Financial Transaction Information. This legislation requires all VASPs conducting business in South Korea to register with the authorities to ensure compliance with anti-money laundering and know-your-customer regulations.

The 17 affected exchanges are KuCoin, MEXC, Phemex, XT, Bitrue, CoinW, CoinEx, ZoomEX, Poloniex, BTCC, DigiFinex, Pionex, Blofin, Apex Pro, CoinCatch, WEEX, and BitMart. Users attempting to access these platforms via their mobile applications will encounter restrictions, preventing new installations and updates.

The FIU has been actively identifying and addressing unregistered foreign exchanges targeting South Korean investors. In 2022, the agency identified 16 such operators, followed by six more in 2023. The current enforcement action reflects the government’s commitment to safeguarding its financial system from potential risks associated with unregulated cryptocurrency trading.

Operators of unregistered exchanges face legal consequences, including up to five years in prison or fines of up to 50 million won . The FIU is collaborating with Apple Korea and the Korea Communications Standards Commission to extend these restrictions to the Apple App Store and to block associated websites, further curbing access to unregistered platforms.

This crackdown is part of South Korea’s ongoing efforts to balance innovation in the cryptocurrency sector with the need for regulatory oversight. By targeting unregistered exchanges, the government aims to protect investors and maintain the integrity of its financial system.