Google Play has instituted access limitations on 17 unregistered foreign cryptocurrency exchanges that service local users in South Korea, following requests from the nation’s regulatory authorities.
On March 21, the Financial Intelligence Unit (FIU) of the South Korean Financial Services Commission (FSC) indicated that it was contemplating penalties against operators who failed to report to the appropriate regulatory bodies.
According to local laws, virtual asset service providers (VASPs) are obligated to inform regulators under the Specified Financial Information Act. At that time, the FIU mentioned it was working with the Korea Communications Standards Commission (KCSC), the body responsible for overseeing internet activities, to strategize on restricting access to these exchanges.
By March 26, the FSC published a list of 22 unregistered platforms, highlighting 17 that had been barred from the Google Play store. This action restricts new downloads and updates for those apps, significantly limiting user access.
The FSC confirmed that the 17 exchanges on the list are now inaccessible on the Google Play Store. Consequently, their applications will not be available for download by new users, and existing users will be unable to receive updates.
The exchanges that are part of the access restrictions include: KuCoin, MEXC, Phemex, XT.com, Biture, CoinW, CoinEX, ZoomEX, Poloniex, BTCC, DigiFinex, Pionex, Blofin, Apex Pro, CoinCatch, WEEX, and BitMart.
The FSC anticipates that this measure will assist in curbing money laundering activities involving cryptocurrency assets and safeguard local users from potential future harm. The FIU is also collaborating with Apple Korea and the KCSC to restrict internet and App Store access to these exchange platforms.
KuCoin previously stated that it is closely observing regulatory developments across the board, including in South Korea. The exchange emphasized the importance of compliance for the sustainable growth of cryptocurrency, but it did not elaborate on specific plans for the South Korean market.
Regulatory actions against unregistered exchanges have been growing in South Korea as the country intensifies its scrutiny of cryptocurrency trading platforms.
On March 20, the Southern District Prosecutors’ Office in Seoul conducted a raid on Bithumb’s offices due to suspicions of financial misconduct involving the former CEO of the exchange. Prosecutors alleged that board member Kim Dae-sik used company resources to buy a personal apartment.
Additionally, a report surfaced regarding intermediaries being compensated to list token projects on Bithumb and Upbit. In response, Upbit demanded the disclosure of the identities of the crypto projects that claimed to have paid for listing services.