South Korea Blocks 17 Foreign Crypto Apps on Google Play

South Korea has intensified its regulatory crackdown on foreign cryptocurrency exchanges by blocking access to several popular platforms on the Google Play Store. This move is part of the country's ongoing efforts to protect its users from the risks associated with unregistered crypto exchanges. The Financial Intelligence Unit (FIU), South Korea's financial watchdog, announced on March 26, 2025, that Google had begun restricting access to 17 such apps due to their “unregistered” operations targeting Korean users. As a result, South Korean users can no longer install these apps, and those that are already installed will not receive updates.

The FIU's action aligns with South Korea's stringent regulations on cryptocurrency, which require all exchanges, including foreign ones, to register with local authorities if they are operating in the country. An exchange is considered active in South Korea if it provides a Korean-language site, conducts marketing targeting Korean users, or facilitates trades in the Korean won. The FIU has stated that unregistered crypto exchanges pose significant risks to users, including potential personal data breaches, hacking incidents, and money laundering. The agency emphasized that the ban aims to "help prevent user damage and curb money laundering through virtual assets."

The FIU is also in discussions with Apple Korea and the Korea Communications Standards Commission to enforce similar restrictions on crypto exchange websites and the App Store. This regulatory action is not an isolated incident; it follows a broader trend of governments cracking down on digital asset platforms. Earlier in February 2025, Apple removed several crypto exchange apps from Japan's App Store at the request of authorities, part of a broader effort to rein in digital asset platforms. Japan's Financial Services Agency had previously issued warnings to these exchanges for lack of registration. Additionally, India had blocked access to major platforms such as Binance, Kraken, and KuCoin earlier this year.

With the curbs on international exchanges, domestic platforms are expected to gain market share. South Korea’s top exchange, Upbit, was partially suspended by the FIU due to violations of local regulations. The suspension temporarily limits new customers from depositing and withdrawing crypto, as transactions with unregistered crypto service providers are not allowed. This regulatory move underscores South Korea's strong stance on cryptocurrency regulation, making it increasingly difficult for traders using these exchanges. The country's approach to crypto regulation is evident in the significant number of users and the substantial amount of crypto held by its major licensed exchanges, indicating solid trust in the market.