- South Korea has removed fourteen unregistered crypto apps to protect local users.
- The government is enforcing strict compliance for all exchanges operating in South Korea.
- Major platforms like KuCoin and MEXC were banned due to non-compliance with regulations.
In a significant move, South Korea’s Financial Intelligence Unit (FIU) has removed 14 cryptocurrency exchange apps, including well-known platforms like KuCoin and MEXC, from its Apple App Store. This action is part of the government’s ongoing campaign to combat unregistered foreign operators offering services to South Korean citizens without compliance. The restrictions were enforced from April 11. Earlier, the exchanges faced scrutiny from Google Play Store and were restricted since March 25, 2025.
The Financial Services Commission (FSC), responsible for enforcing these regulations, ensured that all Virtual Asset Service Providers (VASPs) register with the FIU before offering services to South Korean users. The FIU has underscored the importance of adhering to the Specific Financial Transaction Information Reporting and Use Act, which mandates strict Know Your Customer (KYC) and Anti-Money Laundering (AML) measures for exchanges. Failing to comply can result in hefty fines of up to 50 million won (approximately $36,000) or a prison sentence of up to five years.
Impact on Major Cryptocurrency Exchanges
KuCoin, MEXC, and Poloniex were among the 14 apps that were removed as they were found to be operating without registration, making them subject to regulatory actions. According to a statement from KuCoin, “We are closely monitoring regulatory developments across all jurisdictions, including South Korea, and will fully cooperate with any regulatory requirements.”
To prevent further access to unregistered crypto platforms, the FIU has collaborated with Internet Service Providers (ISPs), mobile platforms, and other regulatory partners. The intention is to protect investors and ensure that only registered and compliant exchanges are operational in the country.
Related: South Korea Blocks 17 Crypto Exchange Apps on Google Play
Rising Demand for Regulated Exchanges in South Korea
South Korea’s crypto market has seen substantial growth in recent years, with more than 9.6 million citizens now holding accounts with the country’s five main regulated exchanges, such as Upbit and Bithumb. This represents a 52.6% increase compared to the previous year. Interestingly, senior investors have shown the most significant growth, with 1.75 million users in their 50s and 636,700 users aged 60 or older.
As the country’s cryptocurrency market expands, the need for stringent KYC, AML, and compliance with the Financial Action Task Force (FATF) guidelines has never been more urgent. The growing wealth concentration among older users highlights the critical need for robust security measures to safeguard digital assets.
