- Korean regulators remove Poloniex, KuCoin, MEXC, and 14 other exchanges from Google Play.
- Unregistered platforms cited as risks for personal data leaks and money laundering.
- Discussions underway with Apple to implement similar restrictions in the App Store.
South Korean financial authorities have taken decisive action against unregistered cryptocurrency exchanges by restricting access to 17 foreign exchange applications on Google Play. The Financial Intelligence Unit (FIU) announced on March 26 that major platforms, including Poloniex, KuCoin, MEXC, Phemex, and Bitrue have been blocked from the Android app marketplace in South Korea.
According to the FIU press release, Google has implemented the restrictions based on the exchanges’ “unregistered operations targeting Korean users.” The impact extends beyond preventing new installations, as existing users of these apps will no longer receive updates, effectively freezing the applications in their current state.
South Korean regulations require all cryptocurrency exchanges to register with government authorities, and the requirement is also extended to foreign companies. The FIU clarified that foreign exchanges may be considered operating in Korea if they maintain Korean-language websites and conduct marketing aimed at Korean users, or support transactions in Korean won.
The regulatory body highlighted multiple concerns regarding unregistered platforms. They warned that they pose risks, including potential leakage of personal information, increased vulnerability to hacking attempts, and possible exploitation for money laundering activities. The FIU also emphasized that funds and assets on these platforms “are not subject to financial regulations” and therefore may lack protection.
“This measure is expected to help prevent user damage and curb money laundering through virtual assets,” the FIU stated. The agency also revealed ongoing discussions with Apple Korea and the Korea Communications Standards Commission to implement similar restrictions for iOS applications and websites.
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This enforcement action mirrors steps taken in Japan earlier this year. At the request of Japanese authorities, Apple removed multiple cryptocurrency exchange applications from its App Store. In February, apps for Bybit, KuCoin, Bitget, MEXC, and LBank disappeared from Japan’s App Store after the exchanges received warnings from Japan’s Financial Services Agency (FSA) regarding their unregistered operations.
As South Korean authorities continue discussions with Apple regarding similar restrictions for iOS devices, unregistered exchanges face mounting pressure. If not compliant, they can potentially lose access to one of Asia’s most active cryptocurrency markets.
