- Apple has removed 16 crypto exchange apps, including KuCoin and MEXC, from its South Korean App Store.
- The ban targets exchanges operating without proper registration, putting local users at risk.
South Korea’s Financial Intelligence Unit (FIU) has asked Apple to block certain apps linked to unregistered cryptocurrency exchanges. These platforms were providing services to Korean users without complying with local regulations. The action is intended to safeguard users from potential financial threats and ensure that all crypto services in the country operate within the legal framework.
Crackdown on Unregistered Exchanges
Apple has blocked 16 crypto exchanges, including KuCoin and MEXC, from its App Store in South Korea. This action, which started on April 11, follows a request from South Korea’s Financial Intelligence Unit (FIU) due to the exchanges operating without proper registration. New users will no longer be able to download the apps, and existing users won’t receive future updates, limiting their access to these platforms.
The FIU stated that these exchanges were conducting business in South Korea by offering Korean-language websites, running local marketing campaigns, and enabling transactions in Korean won. South Korean regulations require any foreign crypto operator engaging in such practices to register with the FIU. Failure to comply is considered a criminal offence, punishable by up to five years in prison or a fine of up to 50 million won (approximately $35,200).
The authorities aim to protect users and reduce exposure to threats like hacking, data breaches, and the potential misuse of assets. Without regulatory oversight, unregistered exchanges pose significant risks, particularly in terms of consumer protection and financial security. These platforms often lack user protection measures, such as keeping customer funds separate from operational accounts, leaving users vulnerable to losses in case of fraud, insolvency, or service disruption. Recovery options may also be extremely limited.
Google took similar action, blocking access to 17 unregistered crypto exchange apps on the Play Store starting March 25. This coordinated effort highlights the growing concern among regulators about the operation of unregistered crypto platforms.
Despite these regulatory actions, crypto adoption in South Korea continues to rise. By the end of March, the number of local exchange users exceeded 16 million, representing nearly 32% of the country’s population.
The data, compiled from accounts at the country’s top five domestic virtual asset exchanges – Upbit, Bithumb, Coinone, Korbit, and Gopax – shows consistent growth throughout 2024, pouring into 2025. South Korea is actively working to strengthen its crypto task force, with plans to turn it into a permanent investigative unit, expanding its authority and resources to combat crypto-related crimes.
This move follows several high-profile incidents and scandals, including a civil servant accused of embezzling public funds for crypto trading and a crypto mining operation in Gwangju that was a front for illegal gambling. These incidents have heightened the urgency for stricter regulations and oversight in the crypto space.
The FSC has warned users about the risks associated with dealing with unregistered platforms. Currently, there are 28 officially registered crypto businesses in South Korea, which have met the necessary regulatory requirements.
