- South Korea blocked 14 crypto exchange apps on the Apple Store for operating without registration.
- Users cannot download or update blocked crypto apps due to new rules from financial authorities.
- Unregistered crypto firms face jail time or heavy fines under strict South Korean regulations.
South Korea has expanded its crackdown on unregistered crypto exchanges. The Financial Services Commission (FSC) blocked 14 exchange apps from the Apple Store on April 11.
Apps Removed for Operating Without Registration
Authorities say the blocked exchanges, including KuCoin and MEXC, violated local registration rules. They allegedly operated as unregistered virtual asset businesses. The FSC confirmed these firms failed to meet reporting requirements under South Korean law.
According to a report released on April 14, the action aims to prevent user harm and illegal financial activity. The report also highlights the involvement of the Financial Intelligence Unit (FIU). The FIU will continue to identify and restrict apps and websites that breach regulations.
Earlier Moves by Google Preceded Apple Action
This latest enforcement follows similar actions taken by Google. On March 26, Google Play blocked access to multiple unregistered crypto platforms. KuCoin and MEXC were also targeted in that earlier sweep.
In total, the FSC identified 22 platforms operating in the country without registration. Seventeen of them are already restricted on Google’s platform. South Korean users cannot download these apps from the Apple Store. Those who have them installed cannot update them either.
Regulations Impose Heavy Penalties
The FSC warned that unregistered operations carry criminal penalties. Violators face up to five years in prison. Fines can reach 50 million won, or about $35,200. South Korean law requires crypto businesses to register with the FIU.
This includes firms involved in sales, brokerage, storage, or management of digital assets. Any failure to report such activities triggers legal consequences.
Sanctions Coincide with Crypto Boom in Country
The move comes as crypto usage surges across South Korea. Data shows more than 16 million South Koreans used crypto exchanges as of March 31. This figure accounts for over 30% of the national population.
Industry experts expect user numbers to exceed 20 million by late 2025. The FSC and FIU appear to be responding to that rapid growth. Reports indicate authorities may impose further sanctions. These may include blocking access to online services of non-compliant operators.
Officials Under Scrutiny for Crypto Holdings
Government officials are also under review. On March 27, data revealed that over 20% of public officials hold digital assets. Their total holdings amount to $9.8 million.
The South Korean government is reinforcing oversight as crypto gains mainstream attention. More enforcement measures are expected in the coming months.
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- Source: https://cryptonewsland.com/south-korea-blocks-14-crypto-exchanges-on-apple-store-amid-regulatory-push/
