South Korea has intensified its regulatory oversight of the cryptocurrency industry by successfully pressuring Apple to remove 14 unregistered crypto platform applications from its domestic App Store. The Financial Services Commission (FSC) announced Monday that these apps, including popular exchanges KuCoin and MEXC, have been blocked from South Korean users since April 11 following a request from the country’s Financial Intelligence Unit (FIU). The statement confirmed that “the apps can no longer be newly installed, and existing users cannot receive updates.”
This action follows a similar enforcement measure implemented on Google’s Play Store in March, when the same unregistered crypto platforms were removed from Android devices in South Korea. The coordinated approach across both major app distribution platforms demonstrates the Korean government’s comprehensive strategy to ensure compliance with its cryptocurrency regulations. The FIU, which specializes in combating money laundering and terrorist financing, requires all foreign cryptocurrency service providers to register with authorities before conducting business in South Korea.
The consequences for non-compliance are severe, with the FSC statement highlighting that unregistered operations constitute a criminal offense punishable by up to five years imprisonment or fines reaching 50 million Korean won (approximately $35,120). Despite this regulatory tightening on unregistered platforms, South Korea appears to be simultaneously creating pathways for institutional cryptocurrency adoption. Local banks and registered crypto exchanges are reportedly preparing infrastructure to serve corporate clients as regulators begin easing restrictions on institutional investment in digital assets, while major banking institutions have advocated for greater flexibility in their collaborations with compliant cryptocurrency firms.
