- South Korea’s FIU has blocked 14 unregistered crypto exchange apps on Apple’s App Store
- This move follows a similar action where 17 unregistered crypto apps were blocked on Google Play in March
- The actions are part of South Korea’s efforts to enforce compliance with its financial regulations and protect users.
South Korea has intensified its regulatory measures against unregistered cryptocurrency applications, leading to the blocking of 14 apps on Apple’s App Store. These apps, operated by foreign virtual asset service providers (VASPs) such as KuCoin and MEXC, were deemed non-compliant with the country’s stringent financial regulations. The move follows a similar action in late March when 17 unregistered crypto apps were restricted on the Google Play Store.
FIU Finds the Delete Button
The ban was implemented on Monday by the Financial Intelligence Unit (FIU) under the Financial Services Commission (FSC), which is responsible for enforcing such regulations. South Korea mandates that all VASPs offering services to its residents must register with the FIU, adhering to the Specific Financial Transaction Information Reporting and Use Act. Non-compliance can result in severe penalties, including fines of up to 50 million won ($35,200) or imprisonment for up to five years.
The blocked applications include services from exchanges like KuCoin, MEXC, Phemex, CoinEx, and Poloniex, with the goal being to prevent money laundering, protect investors, and maintain market integrity. A year ago, Crypto.com postponed its South Korea launch due to a money-laundering probe.
Many Regulatory Hurdles to Clear
Crypto firms in South Korea face significant compliance hurdles. Users must verify their accounts using real-name bank accounts, while exchanges are required to implement robust Anti-Money Laundering and Know Your Customer protocols. VASPs must also obtain ISMS certification from the Korea Internet & Security Agency and adhere to the Financial Action Task Force guidelines. This includes collecting and sharing specific information about the originator and beneficiary of virtual asset transfers exceeding 1 million won.
These enforcement actions reflect South Korea’s stringent approach to regulating the crypto industry, aiming to protect users and uphold the integrity of the financial system. Given how strict the regulations are, it is no surprise that so many exchanges are falling short of the standards.
