As of March 26, users in South Korea can no longer download or update apps for 17 cryptocurrency exchanges that have not registered with local authorities. The move was announced by the Financial Services Commission (FSC) of South Korea.
The restrictions apply to platforms such as KuCoin, MEXC, Phemex, Poloniex, and others. The measure was implemented following a formal request from the FSC and enforced by Google.
Legal Basis and Regulatory Enforcement
Google acted in accordance with South Korea’s Special Financial Transactions Information Act, which requires all crypto platforms serving South Korean users — regardless of where they are based — to register with local authorities.
Under Article 7 of this law, foreign exchanges are considered operating within South Korea if they meet any of the following criteria:
- Support the Korean language.
- Engage in marketing targeted at Korean users.
- Allow trading in Korean won (KRW).
Violations can result in fines up to 50 million won (approximately $34,000) or up to five years in prison.
Since 2022, South Korea’s Financial Intelligence Unit (FIU) has been monitoring foreign operators. That year, it identified 16 unregistered platforms, and an additional six in 2023. Registered exchanges are prohibited from engaging with unregistered entities.
Broader Enforcement Coming
The FIU is now working with other agencies, including Apple Korea and the Korea Communications Standards Commission, to implement similar restrictions across other platforms — from the App Store to crypto service websites.
A current list of 28 registered exchanges legally operating in South Korea is available on the FIU’s official website.
Allegations of Listing Manipulation and Excessive Fees
Amid these regulatory developments, allegations have surfaced online that some Asian crypto exchanges are charging exorbitant fees for token listings.
According to Chinese journalist Colin Wu, one project allegedly paid $10 million to be listed on Upbit, while another reportedly paid $2 million for listing on Bithumb. In some cases, listing fees were said to reach up to 5% of the total token supply.
Upbit has denied the accusations, stating that listings are free and based solely on the quality of the project. The company emphasized that it does not work with third-party intermediaries, and all offers of "paid listings" come from scammers.
Similar accusations have been directed at Binance and Coinbase, but both exchanges also denied the claims, clarifying that any payments are refundable deposits intended to support project development.
This post is for informational purposes only and is not an ad or investment advice. Please do your own research making any decisions.