South Korea Blocks 14 Crypto Exchange Apps from Apple Store in New Crackdown

Highlights:

• South Korea banned 14 unregistered crypto exchange apps on Apple’s App Store.
• KuCoin, MEXC, and others faced restrictions due to non-compliance with local regulations.
• Crypto exchange users in South Korea exceeded 16 million as of March 2025.

South Korean financial regulators have recently stepped up their regulation of cryptocurrency exchanges. On April 11, the Financial Services Commission demanded that Apple block 14 applications associated with unregistered exchanges. Apple has followed Google Play’s footsteps, which removed 17 unregistered apps on March 26.

This action has been initiated by the Financial Intelligence Unit, which functions under the FSC. It intends to mitigate threats associated with money laundering and unregistered virtual assets. Some of those exchanges affected by the app ban included KuCoin, MEXC, and Poloniex. The applications are not available for download or update on Apple’s domestic store.

⚡UPDATE: Apple blocks KuCoin, MEXC, and 14 other crypto exchanges in South Korea. pic.twitter.com/tIsHXeXsVQ

— DeFi Planet (@PlanetDefi) April 15, 2025

The government was able to establish that 22 foreign-based platforms were not registered in the country. Out of them, 17 applications were already removed from Google’s market by the time Apple began its ban. The remaining ones are currently under review. South Korean regulation entails that any given crypto firm must first register with the FIU prior to providing services. Any non-compliance may lead to imprisonment for up to five years or a fine of 50 million won (around $35,000).

Compliance Push Amid Crypto Market Boom

The increased use of crypto exchanges has paved the way for increased scrutiny of the exchanges. In March, it was recorded that South Korea ticked over 16 million registered users, equalling over 30% of the country’s population. Specifically, experts predict that the number of users could reach or even exceed 20 million by year-end.

𝙉𝙀𝙒 : 🇰🇷韓国の暗号資産取引所ユーザーが1600万人を突破、人口の30%超に

日本も負けていられない。 https://t.co/5WcZE7jB8V pic.twitter.com/UHOGGLoIiV

— Mr.₿itcoin (@coinspace_) March 31, 2025

The regulators in South Korea opine that increased assertion of authority is necessary for better control in the market. There are currently several compliance requirements that the crypto exchanges must have. These include the use of local banks for real-name verification and robust Anti-Money Laundering (AML) measures. In addition, Know Your Customer (KYC) must be implemented.

Platforms must also obtain certification under the Information Security Management System (ISMS). The Korea Internet & Security Agency (KISA) issues it to authorized companies. Exchanges must also follow the Financial Action Task Force (FATF) guidelines. These rules cover the tracking of large asset transfers and user identity verification.

Regulators Commit to Continuous Enforcement

The FSC will also subject such platforms to further monitoring for providing exchange services related to cryptocurrencies without proper registration. The enforcement in the future may also extend to banning access to internet sites besides mobile applications. Unregistered exchanges that violate the law will be subject to prosecution.

From 2022 to 2023, the FIU has investigated more than 20 foreign companies, indicating that oversight is not a one-time effort. Instead, the approach depicts a strategy to enhance the safety of users and adhere to the set financial regulations.

South Korea also aims to gradually abolish the current restrictions for institutional trading in cryptocurrency. In 2025, regulators may allow non-profit organizations, universities, and some firms to participate in the crypto markets.