- South Korea blocks 14 crypto exchange apps on Apple Store for operating without registration.
- KuCoin and MEXC are among the exchanges targeted under the FSC’s enforcement action.
- Crypto app bans follow rising adoption, with 16 million South Koreans using crypto platforms.
South Korean regulators have ordered the removal of 14 cryptocurrency exchange applications from the Apple Store. The decision was announced by the Financial Services Commission (FSC) as part of its ongoing effort to block unregistered virtual asset operators from serving domestic users.
Among the platforms affected are KuCoin and MEXC. This follows a similar move by Google Play on March 26, which blocked access to 17 unregistered exchanges. The FSC had previously published a list of 22 unregistered platforms, many of which are now restricted on major app marketplaces.
Regulatory Crackdown Targets Unregistered Operators
The blocked exchanges were allegedly operating as unregistered overseas virtual asset service providers (VASPs). South Korea requires crypto operators involved in sales, brokerage, management, or storage to report to the Financial Intelligence Unit (FIU). Operators who fail to register face criminal charges.
According to the FSC, users in South Korea will no longer be able to download the blocked apps. Additionally, current users will not be able to update them. The FIU stated that conducting business without registration is a criminal offense. Penalties include up to five years in prison and a fine of 50 million won ($35,200).
According to the FSC report, the FIU will continue to cooperate with other institutions to block the websites and applications of the noncompliant platforms. This is to prevent money laundering and protect domestic users from harm. This action was similar to one the FSC undertook in 2022 and 2023. In 2022, 16 foreign crypto companies were targeted, and in 2023, 6 others were addressed. Authorities are pressuring firms operating illegally within South Korea’s jurisdiction.
Crypto Adoption Drives Enforcement Measures
The regulatory crackdown comes amid rising crypto adoption in South Korea. By March 31, the number of people with active crypto exchange accounts amounted to more than 16 million citizens. This is over 30% of the country’s population. However, industry analysts believe the figure may exceed 20 million by the end of 2025.
The increased usage of crypto has resulted in more regulation being placed by the FIU and FSC. Officials are worried that unregistered platforms could endanger both the financial security and the protection of investors. Kim So-young, Vice Chairman of the FSC, pointed out how crypto adoption is becoming a growing force and, at the same time, said how important it is for regulations to have alignment.
In late March, local media outlet Hankyung reported that the FIU and FSC were reviewing additional sanctions. These included blocking mobile apps and websites of foreign platforms operating without proper authorization. The FIU states that foreign virtual asset businesses must comply with the Act on Reporting and Use of Specific Financial Transaction Information. This law mandates reporting obligations for all VASPs conducting business in South Korea.
The recent enforcement actions signal a broader shift in how South Korea manages crypto oversight. Authorities are prioritizing compliance, transparency, and user safety as participation in the crypto market continues to expand. The FSC stressed that it will keep pushing on noncompliant platforms. The agency is looking to block access across both the mobile and the web channel to a number of new unregistered operators. This initiative will run primarily on cooperation with global app stores and internet providers.
In addition to the bans, the blocked exchanges on the Apple Store include those exchanges currently banned on Google Play. The effort demonstrates that the country’s financial authorities and digital service platforms worked in coordination.
