South Korea’s Financial Intelligence Unit (FIU) has recently taken action against offshore crypto exchanges operating without regulatory approval. In a directive issued on April 14, the agency requested Apple to restrict access to 14 mobile applications associated with unregistered digital asset platforms on its App Store.
The list of apps includes popular exchanges like KuCoin, MEXC, Phemex, BitMart, CoinEx, Poloniex, BitTrue, Blofin, CoinW, BTCC, ZoomEX, and CoinCatch. This move by the FIU follows a similar action taken two weeks earlier against unregistered crypto apps on the Google Play Store.
The FIU stated that these platforms failed to register under South Korea’s digital asset regulations, which mandate exchanges to comply with anti-money laundering (AML) laws and register with local authorities. The regulations are applicable to any foreign operator offering services in Korean, conducting local marketing campaigns, or facilitating transactions in Korean Won.
The agency emphasized that these restrictions are in place to protect consumers and reduce the risk of financial crimes. It also mentioned that it will continue working with relevant institutions to block access to unregistered platforms through mobile and web channels.
Non-compliant exchanges could face severe legal consequences, including imprisonment for up to five years or fines of up to 50 million Korean won (approximately $35,000). To ensure consumer protection, the regulator has published a list of registered exchanges for users to reference and advised them to withdraw their assets from unregistered platforms to avoid potential losses.
This enforcement effort reflects a broader commitment by South Korean authorities to regulate offshore platforms and establish a safer digital asset market. It comes at a time when major South Korean banks are urging regulators to provide clearer compliance frameworks, indicating a growing demand for regulatory clarity within the industry.
Overall, the FIU’s actions highlight the importance of adhering to regulatory requirements in the crypto space to safeguard consumers and maintain the integrity of the market.