South Korea Blocks 14 Crypto Apps on Apple’s App Store
1min read South Korea has intensified its regulatory measures against unregistered cryptocurrency applications, blocking 14 apps on Apple’s App Store. These apps, operated by foreign Virtual Asset Service Providers (VASPs) such as KuCoin and mexc, were deemed non-compliant with the country's stringent financial regulations. This move follows a similar action in late March, when 17 unregistered crypto apps were restricted on the google Play Store.
The Financial Intelligence Unit (FIU), under the Financial Services Commission (FSC), is responsible for enforcing these regulations. South Korea mandates that all VASPs offering services to its residents must register with the FIU, adhering to the Specific Financial Transaction Information Reporting and Use Act. Non-compliance can result in severe penalties, including fines of up to 50 million won or imprisonment for up to five years.
The blocked applications include services from exchanges like KuCoin, MEXC, Phemex, coinex, and Poloniex. The primary goal of these restrictions is to curb the operations of unregistered platforms within the country, aiming to prevent money laundering, protect investors, and maintain market integrity.
Crypto firms in South Korea face significant compliance hurdles. Users must verify their accounts using real-name bank accounts, while exchanges are required to implement robust Anti-money laundering (AML) and Know Your Customer (KYC) protocols. VASPs must also obtain ISMS certification from the Korea Internet & Security Agency (KISA) and adhere to the Financial Action Task Force (FATF) guidelines. This includes collecting and sharing specific information about the originator and beneficiary of virtual asset transfers exceeding 1 million won.
Additionally, South Korea has a ban on institutional crypto trading, but there are plans to gradually lift these restrictions. This phased rollout will allow non-profits, universities, law enforcement agencies, and listed companies to trade crypto assets, potentially opening up new opportunities for institutional involvement in the cryptocurrency market.
