South Korea Blocks 14 Crypto Exchanges on Apple Store for Non-Compliance
1min read South Korea has expanded its regulatory measures against unregistered cryptocurrency exchanges by blocking 14 crypto exchange applications from the apple Store. This action, announced by the country’s Financial Services Commission (FSC) on April 11, targets exchanges that are allegedly operating without proper registration. Among the affected exchanges are KuCoin and mexc, which were also targeted in a previous ban by google Play on March 26. The FSC has published a list of 22 unregistered platforms, with 17 already blocked on Google's marketplace.
The FSC's report, made public on April 14, highlights that the banned exchanges were operating as unregistered overseas virtual asset operators. The Financial Information Analysis Institution (FIU) will continue to promote the blocking of apps and internet sites of such operators to prevent money laundering and user damage. Users will not be able to download the banned apps on the Apple Store, and existing users will be unable to update them. The FSC emphasizes that “unreported business activities are criminal punishment matters” with penalties of up to five years in prison and a fine of up to 50 million won.
This move by the FIU and FSC comes as part of a broader effort to enforce stricter regulations on cryptocurrency exchanges operating within the country. The FIU has been considering sanctions against crypto exchanges operating without registration with local regulators since March 21. Operators of crypto sales, brokerage, management, and storage must report to the FIU, and failure to comply with registration and reporting requirements is subject to penalties and sanctions.
The latest sanctions are part of South Korea's efforts to regulate its cryptocurrency market as it reaches a “saturation point.” As of March 31, crypto exchange users in the country passed 16 million, equivalent to over 30% of the population. Industry officials predict that the number could surpass 20 million by the end of 2025. Additionally, over 20% of South Korean public officials hold cryptocurrencies, with the total amount reaching significant figures on March 27. The assets varied and included Bitcoin, Ether, XRP, and Dogecoin.
By blocking unregistered exchanges, South Korea is sending a clear message that it will not tolerate non-compliance with its regulatory framework. This move could lead to other countries following suit and implementing similar regulations to ensure the integrity and security of their cryptocurrency markets. Additionally, this action could encourage more exchanges to register and comply with local regulations, thereby fostering a more transparent and secure cryptocurrency ecosystem. The FIU's actions underscore South Korea's commitment to regulating the cryptocurrency market and ensuring that all exchanges comply with local laws and regulations. 
