South Korea has taken strict action against unregistered cryptocurrency exchanges by requesting Google to block access to 17 foreign trading platforms, including KuCoin and MEXC.
The Financial Services Commission (FSC), South Korea’s top financial regulator, confirmed that Google has removed these exchanges’ apps from the Google Play Store.
The affected platforms include KuCoin, MEXC, Phemex, XT.com, Biture, CoinW, CoinEX, ZoomEX, Poloniex, BTCC, DigiFinex, Pionex, Blofin, Apex Pro, CoinCatch, WEEX, and BitMart.
According to the FSC, these exchanges violated South Korean law because they did not register as virtual asset service providers (VASPs).
The country’s Specific Financial Transactions Act requires all crypto exchanges operating in South Korea to register with the Financial Intelligence Unit (FIU). Failure to comply can result in heavy fines or even prison sentences for those involved.
In 2022, the FIU identified 16 unregistered exchanges and restricted their operations. Another six platforms were targeted in 2023. Now, with this latest action, authorities are doubling down on their efforts to regulate the crypto market.
One of the main reasons for this crackdown is to prevent illegal activities such as money laundering and fraud. The FSC stated that exchanges were identified as illegal if they had a Korean-language website, marketed services to local traders, or supported transactions in Korean won.
This move boosts Upbit, which already dominates South Korea’s crypto market. With foreign exchanges restricted, its control may grow further, handling most of the country’s crypto trades.
The FSC is also working with Apple Korea and the Korea Communications Standards Commission to extend similar restrictions to the Apple App Store and crypto-related websites.
Also Read: Bank of Korea Rejects Bitcoin for Foreign Exchange Reserves
