South Korea has taken a tough stance on unregistered crypto exchanges. On April 11, the Financial Services Commission (FSC) announced that 14 overseas exchanges, including KuCoin and MEXC, were blocked from the Apple App Store. These platforms were reportedly operating without official registration in the country.
A report released on April 14 confirmed the ban, stating that these exchanges were considered unregistered virtual asset service providers (VASPs). The Financial Intelligence Unit (FIU) will continue to push for the removal of such apps and websites to protect users and prevent money laundering.
This move follows a similar crackdown on March 26, when Google Play blocked access to several unregistered crypto platforms, including KuCoin and MEXC. So far, 17 out of 22 flagged exchanges have been removed from Google’s app store.
As stated by the FSC, the applications are no longer available for downloading or updating on the Apple Store. Failure to register the business means that one is liable to face up to five years imprisonment and a fine of 50 million won, which is equivalent to $35,200.
The FIU is also thinking of other measures that it can take against the platforms that have not registered. In South Korea, any platform that sells, stores, or brokers cryptocurrencies is required to submit information to the FIU.
The use of crypto is on the rise in the country, with more than 16 million users by the end of March 31. Some predict that this number can reach 20 million by the end of 2025 — and the rise is happening at a time when regulation is only becoming stricter.
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