The Crypto exchanges in South Korea Financial Services Commission (FSC) reported on April 14 that 12 cryptocurrency exchanges, including KuCoin and MEXC, were withdrawn from the App Store in the nation due to operating without the necessary registration.
Apple Blocks Access to Unregistered Crypto Apps
The Financial Intelligence Unit (FIU), a division within the FSC responsible for implementing anti-money laundering (AML) legislation, formally requested that Apple begin blocking access to these apps on April 11.
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New users are now unable to download the affected apps.
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Existing users will no longer receive updates, leaving them vulnerable to potential security risks.
These platforms apparently did not register with the South Korean authorities but kept servicing Korean users. They had Korean-language websites, aired local ads, and allowed Korean won transactions, all of which are considered domestic commercial activity in South Korea.
Legal Risks for Unregistered Crypto Exchanges in South Korea
As part of South Korea’s anti-money-laundering rules, every foreign company that offers virtual asset services to local consumers must register with the Financial Intelligence Unit (FIU). If you don’t, you can face criminal charges and punishments like:
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Up to five years in prison
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Fines up to 50 million won (~ USD 35,200)
According to the FIU, this enforcement action is intended to safeguard consumers, lessen cybersecurity risks, and improve financial transparency in the fast-expanding digital asset market.
Regulatory Crackdown: Not Just Apps, But Websites Too
Unregistered cryptocurrency exchanges have been the target of the FIU’s increased enforcement efforts in recent months, which have extended to include:
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Mobile apps (iOS and Android)
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Associated websites and web services
This comes after Google took a similar stance on March 25, removing 17 unregistered exchange apps from the Play Store.
User Safety Concerns and the Risks of Unregulated Platforms
According to the FIU, unregistered exchanges often fail to implement basic user protection measures, including:
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Segregation of customer funds from operational accounts
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Compliance with AML protocols
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Risk management practices for fraud and insolvency
Without these protections, users are more likely to suffer losses, data breaches, or service interruptions, and they frequently have few remedy choices.
“Users are requested to check whether the virtual asset business operator they are transacting with is a reported business operator… and if it is an unreported business operator, take measures such as withdrawing their own virtual assets,” the FIU advised.
Crypto Adoption Remains Strong in South Korea
Despite the regulatory clampdown, crypto adoption in South Korea continues to rise:
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As of March 2025, over 16 million South Koreans were using local exchanges, representing nearly 32% of the national population.
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A recent report also revealed tha, as of March 27, over 20% of public officials. The country held digital assets.
