South Korean authorities have ramped up pressure on unregistered crypto platforms. As of April 11, mobile apps from 14 foreign exchanges — including KuCoin and MEXC — have been blocked in the country. The local regulator claims that these companies operate without mandatory registration.
Apps Removed From App Store
The Financial Intelligence Unit of South Korea (FIU) successfully pushed for the removal of 14 cryptocurrency apps from the Korean section of the Apple App Store. Among them are KuCoin and MEXC, along with 12 other exchanges whose names were not disclosed. The apps have been unavailable for download since April 11. At the time of publication, the companies had not issued any comments.
Violation of Local Law
Under South Korea’s Financial Reporting Act, all foreign cryptocurrency service providers are required to register with the FIU before offering services to Korean users. Failing to do so is considered illegal and may lead to criminal prosecution.
The FIU noted that it has been identifying such violations since 2022. That year, 16 companies were added to a blacklist, followed by another 6 in 2023. Measures include not only blocking websites and mobile apps but also potential criminal penalties.
Another Step Toward Market Cleanup
The FIU stated that it will continue to block access to unregistered platforms to minimize money laundering risks and protect investors. In March, the regulator requested that Google restrict access to 17 similar applications. That round of enforcement affected platforms like KuCoin, MEXC, Phemex, Poloniex, and others.
It is worth noting that Google complied with the regulator's request. Violations can lead to fines of up to 50 million won (approximately $34,000) or up to five years in prison.
According to the FIU, the crackdown on foreign platforms operating outside the country’s jurisdiction is part of a broader strategy to tighten control over the crypto market. The new measures are being coordinated with other government agencies.
This post is for informational purposes only and does not constitute financial advice or a promotional endorsement. Please conduct your own research before making any financial decisions.
This post is for informational purposes only and is not an ad or investment advice. Please do your own research making any decisions.