South Korea has blocked 14 unregistered crypto exchange apps from Apple’s App Store as part of its latest crackdown on illegal digital asset operations. The Financial Services Commission (FSC) confirmed the move this week, targeting platforms such as KuCoin and MEXC that were reportedly operating without proper registration. Authorities say the action is meant to protect local users and strengthen the country’s financial safeguards.
The apps were blocked following a request by South Korea’s Financial Intelligence Unit (FIU), which is also working to restrict access to related websites. Officials say these steps are aimed at preventing money laundering and reducing user harm linked to unauthorized crypto services. The move aligns with Seoul’s broader efforts to create a safer crypto trading environment for citizens.
South Korea’s Financial Intelligence Unit (FIU) has continued its efforts to block unregistered crypto exchanges operating within the country. On April 11, the FIU collaborated with Apple to remove 14 foreign-based crypto apps from the Apple App Store. Among the exchanges targeted were KuCoin and MEXC, which have been accused of offering services in South Korea without the required registration. This move is part of a broader push to protect users from potential financial risks and curb illegal operations in the crypto sector.
The Financial Services Commission (FSC) set out clear guidelines to identify foreign crypto firms operating illegally in South Korea. These include whether the platform supports payments in Korean Won, conducts marketing events targeting Korean users, or offers services via local websites. Unregistered businesses face serious consequences, including penalties of up to five years in prison and fines reaching KRW 50 million (approximately $35,000). In the past, South Korea has already taken action against several platforms for violating these rules, blocking 16 exchanges in 2022 and six more in 2023.
The ban also applies to Google Play, which previously blocked 17 foreign exchanges on March 26, including KuCoin. The FSC and FIU’s actions target unregistered platforms that continue to offer their services to South Korean users without adhering to the nation’s strict regulations. Although Apple and Google have taken steps to enforce these bans, it remains unclear if South Korea will impose additional fines or set a compliance deadline for the affected platforms.
South Korean authorities are keen on curbing the risks posed by foreign crypto firms operating without registration. The FIU’s intervention aims to prevent money laundering, protect local investors, and ensure the integrity of the country’s financial system. As part of these efforts, the FIU continues to monitor and block unregistered platforms, working alongside international tech giants to limit access to unauthorized crypto services.
The crackdown on unregistered crypto exchanges is part of South Korea’s broader strategy to regulate the crypto market. The government seeks to strengthen its oversight and protect citizens from potential harm by blocking apps and websites of non-compliant platforms. The authorities have promised to continue their efforts to monitor the market and take action against any businesses operating outside the law.
The South Korean government has urged crypto users to engage only with platforms officially registered under national regulations. The Financial Intelligence Unit (FIU) publishes a list of approved virtual asset service providers on its website to help users verify legal platforms. Authorities warn that using unregistered services could expose individuals to risks such as data breaches, hacking, and potential involvement in illicit activities due to the absence of anti-money laundering oversight.
As of April 11, South Korea officially recognizes 28 licensed crypto operators. The call for caution comes amid a surge in crypto activity, with over 16 million users — more than 30% of the population — reportedly engaged in digital asset trading by March 31. Officials expect this figure to surpass 20 million by the end of 2025, reflecting the growing popularity of crypto despite regulatory crackdowns.
