South Korea’s Crypto Crackdown Intensifies: 14 Exchanges Blocked on Apple Store

South Korea’s Crypto Crackdown Intensifies: 14 Exchanges Blocked on Apple Store

South Korea’s Financial Services Commission (FSC) has continued its crackdown on unregistered crypto exchanges, blocking 14 platforms from the Apple Store. This follows a similar ban on Google Play in March, highlighting the country’s increasingly stringent approach to digital assets. The FSC has been actively working to curb unregulated activity within the crypto space, aiming to protect investors and prevent money laundering.

The list of blocked exchanges includes prominent players like KuCoin and MEXC, further demonstrating the scope of the crackdown. The FSC cited these platforms’ operations as unregistered overseas virtual asset operators, highlighting their failure to comply with South Korea’s regulatory framework.

According to a report released on April 14, the FSC asserts that these exchanges were operating without proper registration and authorization in the country. The Financial Information Analysis Institution (FIU) is actively pursuing the blocking of both apps and websites associated with these unregistered operators to prevent potential financial crimes.

This move follows a pattern of increasing regulatory scrutiny in South Korea. In March, the FIU and the FSC announced their intention to impose sanctions on unregistered crypto exchanges, including blocking access to their applications. These sanctions reflect the government’s commitment to establishing a robust and compliant digital asset ecosystem within the country.

The current crypto landscape in South Korea is characterized by a high level of user adoption. As of March 31, the number of crypto exchange users in South Korea surpassed 16 million, representing over 30% of the population. This widespread adoption has led to a surge in trading activity, but it has also raised concerns about potential risks related to market manipulation, scams, and financial crime.

The FSC’s recent actions signal a clear message: operating without proper registration will not be tolerated in South Korea’s digital asset market. This crackdown highlights the global trend of regulatory authorities increasingly focusing on establishing clear rules and oversight for the rapidly evolving crypto industry.