South Korea Blocks Major Crypto Apps in Crackdown on Unregistered Exchanges
South Korean regulators are tightening the noose on unlicensed crypto firms, ramping up efforts to block access to foreign exchanges that operate without official approval.
In a move that expands earlier enforcement actions, the Financial Services Commission (FSC) confirmed on April 11 that 14 crypto trading platforms have been removed from the Apple App Store. Popular exchanges KuCoin and MEXC were among those affected.
The decision follows a similar wave of takedowns on Google Play just weeks earlier, where 17 exchanges were blacklisted for offering services to South Koreans without registering locally. Authorities say these platforms are violating the country’s digital asset rules by operating as overseas entities without notifying regulators.
According to a report released on April 14, South Korea’s Financial Intelligence Unit (FIU) will continue targeting both mobile apps and websites run by unregistered virtual asset service providers (VASPs). Officials say the crackdown is part of a broader effort to reduce financial crime and protect consumers from potential risks associated with unregulated crypto activity.
The FSC warned that anyone engaging in crypto business in South Korea without proper registration could face up to five years behind bars and fines reaching ₩50 million (roughly $35,000). Moving forward, users will be unable to download or update these blacklisted apps on iOS devices, further limiting their access to overseas platforms.
This regulatory sweep comes amid a massive boom in crypto adoption. As of the end of March, over 16 million South Koreans—more than 30% of the population—were using crypto exchanges, and that number is projected to surge past 20 million by late 2025.
Local officials have made it clear that exchanges handling crypto sales, storage, or brokerage must be registered with the FIU. Failure to do so not only carries steep penalties but may now result in full platform blocks as the government steps up enforcement.
Alexander Stefanov
Reporter at Coindoo
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over 8 years of experience covering the crypto, blockchain and fintech industries, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics.
