South Korea blocks 14 unregistered crypto exchanges on Apple

South Korea’s Financial Services Commission (FSC) has blocked 14 cryptocurrency exchanges, including KuCoin (CRYPTO:KCS) and MEXC, from the Apple App Store as part of its ongoing crackdown on unregistered virtual asset operators.

The move, announced on April 11 and detailed in an April 14 report, follows a similar action by Google Play, which blocked 17 unregistered exchanges on March 26.

The FSC stated that these platforms were operating without proper registration under South Korea’s Specified Financial Information Act.

The Financial Intelligence Unit (FIU), which oversees compliance, emphasised that unregistered business activities could result in penalties of up to five years in prison or fines of 50 million won ($35,200).

The FIU is also working to block access to websites and apps associated with these operators to prevent money laundering and protect users.

Users of the affected apps will no longer be able to download or update them from the Apple Store.

This action is part of South Korea’s broader effort to regulate the cryptocurrency market and ensure compliance with anti-money laundering laws.

Operators of virtual asset services in the country are required to register with the FIU and adhere to strict reporting standards.

The crackdown comes as cryptocurrency usage continues to grow in South Korea.

As of March 31, more over 30 percent of South Koreans, or over 16 million people, were using cryptocurrency exchanges.

This number is expected to surpass 20 million by the end of 2025, according to industry estimates.

Despite the regulatory challenges, cryptocurrencies remain popular among South Koreans, including public officials who collectively hold $9.8 million in digital assets.

The FSC’s actions highlight its commitment to maintaining market integrity while addressing risks associated with unregulated platforms.