Google Play Store Bans 17 Unregistered VASPs in South Korea

Google Play Store has taken action to block 17 unregistered Virtual Asset Service Providers (VASPs) apps, including KuCoin and MEXC, in South Korea. This move is part of the country's increased regulatory efforts to ensure compliance with anti-money laundering (AML) and know-your-customer (KYC) laws. The ban, which took effect on March 25, 2025, prevents users from installing new related applications or updating existing ones.

The action was taken at the request of the South Korean government, specifically the Financial Intelligence Unit (FIU), which is a branch of the Financial Services Commission (FSC). The FIU is responsible for overseeing compliance with financial regulations within the country. Foreign VASPs are legally required to register with the FIU to operate within South Korea, ensuring that these platforms adhere to the necessary regulations designed to protect the integrity and reliability of the country’s financial system.

This regulatory crackdown is expected to have significant implications for cryptocurrency users in South Korea. Users who had already downloaded the apps before the ban may still retain some functionality, but they will no longer be able to receive updates to the applications. New users, however, are completely blocked from installing these apps from the Google Play Store. This limitation on access could potentially push users to seek out other regions with fewer regulations, raising concerns about whether such strict measures could drive investors and companies away from South Korea.

The ban on unregistered VASPs is a clear indication of South Korea's commitment to tightening its regulatory framework for the cryptocurrency industry. By enforcing these measures, the country aims to ensure that all financial services operating within its borders comply with AML and KYC regulations, thereby safeguarding the financial system from potential risks associated with unregulated activities. However, the long-term impact of these restrictions on the cryptocurrency market in South Korea remains to be seen, as users and companies adapt to the new regulatory environment.