- South Korea‘s Financial Services Commission blocked 14 crypto exchanges on Apple‘s App Store, including KuCoin and MEXC, for operating without proper registration.
- The ban follows similar restrictions on Google Play, where 17 unregistered crypto platforms were already blocked in March.
- Unregistered crypto businesses in South Korea face severe penalties, including up to five years imprisonment and fines of up to 50 million won ($35,200).
South Korea’s financial regulators have expanded their crackdown on unregistered cryptocurrency exchanges by blocking 14 trading platforms on Apple’s App Store. On April 11, the Financial Services Commission (FSC) announced the ban, targeting major exchanges including KuCoin and MEXC, which were allegedly operating without proper registration in the country.
The FSC’s report, made public on April 14, states that these exchanges were operating as unregistered overseas virtual asset operators. The Financial Information Analysis Institution (FIU) plans to continue blocking apps and websites of such operators to prevent money laundering and protect users from potential harm.
This latest restriction follows a similar action on March 26, when Google Play blocked access to several unregistered exchanges, including KuCoin and MEXC. The FSC has published a list of 22 unregistered platforms operating in South Korea, with 17 already blocked on Google’s marketplace. According to the regulator, users will not be able to download the affected apps on the Apple Store, while existing users cannot update the applications.
Severe Penalties for Non-Compliance
The FSC emphasized that operating an unregistered crypto business in South Korea is a serious offense, carrying penalties of up to five years in prison and fines reaching 50 million won ($35,200). The crackdown stems from South Korean law requiring all operators of cryptocurrency sales, brokerage, management, and storage to register with the FIU.
On March 21, South Korean publication Hankyung reported that both the FIU and FSC were considering sanctions against unregistered exchanges, including blocking access to their applications. These measures are now being implemented as part of a broader regulatory framework.
Crypto Reaches “Saturation Point” in South Korea
The regulatory actions come as cryptocurrency adoption in South Korea reaches what officials describe as a "saturation point." As of March 31, crypto exchange users in the country exceeded 16 million, representing more than 30% of the population. Industry experts predict this number could surpass 20 million by the end of 2025.
The popularity of cryptocurrencies extends to government officials as well. Reports indicate that over 20% of South Korean public officials hold digital assets totaling approximately $9.8 million as of March 27. These holdings include Bitcoin (BTC), Ether (ETH), XRP (XRP), and Dogecoin (DOGE).
As South Korea continues to strengthen its regulatory oversight, the FSC and FIU remain focused on ensuring compliance within the rapidly growing cryptocurrency sector.
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