South Korea’s Financial Intelligence Unit (FIU) has taken decisive action against unregistered overseas crypto exchanges by blocking access to 17 apps on Google Play. This move comes as part of the government’s efforts to reduce money laundering risks and protect users from unregulated platforms.
Among the affected exchanges are major players like KuCoin, MEXC, Phemex, XT, CoinEx, BitMart, and Poloniex. South Korean crypto users are now unable to download these apps, and existing users will not receive future updates.
South Korean law mandates that all crypto exchanges must register with regulators before offering services. This requirement extends to foreign platforms that provide Korean-language interfaces, target Korean users in marketing campaigns, or process transactions in Korean won. The FIU emphasized that unregistered operators meeting any of these criteria are considered to be conducting business within Korea.
The agency warned that operators of unregistered exchanges could face severe consequences, including imprisonment for up to five years or fines of up to 50 million won (approximately $34,150). To strengthen enforcement, the FIU is collaborating with Apple Korea and the Korea Communications Standards Commission to restrict access on Apple’s App Store and block associated websites.
Additionally, the FIU maintains a public database of compliant exchanges to help users verify if their chosen platform is registered. Users are advised to withdraw their assets immediately if an exchange is not listed.
This crackdown on unregistered exchanges comes at a time of significant growth in crypto participation in South Korea. According to a report, more than 9.6 million South Koreans held accounts with the country’s five major licensed exchanges by the end of last year, representing a 52.6% increase from the previous year. Total crypto holdings across these platforms now exceed 100 trillion won (around $68 billion), indicating strong market confidence.
Notably, older investors are the fastest-growing segment, with users in their 50s surging to 1.75 million and those over 60 climbing from 371,800 to 636,700—a more than 52% increase. Wealth concentration among older users is also significant, with over half of the 9,135 users holding over 1 billion won in digital assets being aged 50 or above. These investors own an average of 2.15 billion won in crypto, highlighting the shifting demographics of Korea’s crypto elite.
In conclusion, the FIU’s actions against unregistered exchanges demonstrate the government’s commitment to regulating the crypto industry and protecting users from potential risks. With the continued growth of crypto participation in South Korea, ensuring compliance and oversight remains crucial for a safe and thriving ecosystem.