South Korea Blocks 14 Crypto Apps on App Store for Non-Compliance

South Korea’s Financial Intelligence Unit (FIU) has intensified its regulatory efforts against offshore crypto exchanges operating without proper authorization. On April 14, the FIU issued a directive to Apple, requesting the restriction of access to 14 mobile applications associated with unregistered digital asset platforms on the App Store.

The list of targeted exchanges includes prominent names such as KuCoin, MEXC, Phemex, BitMart, CoinEx, Poloniex, BitTrue, Blofin, CoinW, BTCC, ZoomEX, and CoinCatch. This action follows a similar move by the FIU two weeks prior, which targeted unregistered crypto apps on the Google Play Store.

The FIU’s enforcement is driven by the need for these platforms to comply with South Korea’s digital asset regulations. These regulations mandate that exchanges adhere to anti-money laundering (AML) laws and register with local authorities. The rules are applicable to any foreign operator offering services in Korean, conducting local marketing campaigns, or facilitating transactions in Korean Won.

The FIU’s primary goal is to protect consumers and minimize exposure to financial crime. The agency has emphasized its commitment to coordinating with relevant institutions to block access to unregistered platforms through both mobile and web channels. Non-compliant exchanges face severe legal consequences, including up to five years in prison or fines of up to 50 million Korean won.

To aid consumer protection, the regulator has made a list of registered exchanges publicly accessible. Users are urged to withdraw their assets from unregistered platforms to avoid potential losses. This enforcement effort underscores South Korea’s broader commitment to regulating offshore platforms and creating a safer digital asset market.

The crackdown coincides with major South Korean banks urging regulators to allow more room for partnerships with crypto firms. This signals a growing demand for clearer compliance frameworks, as the regulatory landscape continues to evolve in response to the dynamic nature of the digital asset industry.