Regulators in South Korea have prohibited the use of Poloniex, KuCoin, MEXC, and 14 other cryptocurrency exchange applications on Google Play due to their unregistered operations within the country.
Authorities in South Korea have limited access to various foreign cryptocurrency exchange applications, including Poloniex, KuCoin, MEXC, Phemex, and Bitrue, on Google Play, citing their lack of registration to operate in the country.
On March 26, the Financial Intelligence Unit announced in a press release that Google started restricting access to 17 such applications because they were engaging in “unregistered operations aimed at Korean users.” Users in South Korea are no longer able to install these apps, and individuals who already have them installed won’t receive updates, the FIU stated.
According to the country’s cryptocurrency regulations, all exchanges must register with the appropriate authorities. This requirement also extends to foreign firms conducting business within South Korea. The agency indicated that foreign exchanges could be deemed to be operating in South Korea if they offer a website in the Korean language, engage in marketing directed at Korean users, or facilitate transactions in Korean won.
The authorities assert that unregistered platforms present risks such as personal data breaches, threats of hacking, and potential exploitation for money laundering. Additionally, the FIU highlighted that users’ funds and assets might not be safeguarded, as these exchanges are “not subjected to financial regulations.”
The agency anticipates that this ban will “help prevent user harm and combat money laundering through virtual assets,” and has noted that it is in talks with Apple Korea and the Korea Communications Standards Commission to impose similar restrictions on App Store applications and websites.
In early February, Apple discreetly removed several cryptocurrency exchange apps from Japan’s App Store following requests from authorities. Mobile applications for Bybit, KuCoin, Bitget, MEXC, and LBank are no longer accessible in Japan’s App Store, after these exchanges were previously warned by Japan’s Financial Services Agency for operating without proper registration.