South Korea’s Financial Intelligence Unit (FIU) has blocked access to 17 overseas crypto exchange apps on Google Play for operating without proper registration, according to a March 26 announcement.
Major exchanges, such as KuCoin, MEXC, Phemex, XT, CoinEx, BitMart, and Poloniex, are among the affected platforms.
According to the statement, South Korean crypto users can no longer download these apps, and those who already have them will not receive future updates.
The authorities argued that this move would help reduce money laundering risks and protect users from unregulated platforms.
South Korean law requires all crypto exchanges to register with regulators before offering services. This applies to foreign platforms if they provide Korean-language interfaces, run marketing campaigns targeting Korean users, or process transactions in Korean won.
The FIU stated 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 legal consequences, including up to five years in prison or fines of up to 50 million won (approximately $34,150).
To widen enforcement, the FIU is now working with Apple Korea and the Korea Communications Standards Commission to restrict access on Apple’s App Store and block associated websites.
The agency also maintains a public database of compliant exchanges so that users can check whether their chosen platform is registered. The FIU advises users to withdraw their assets immediately if an exchange is not listed.
Crypto growth in South Korea
This regulatory clampdown comes amid a sharp rise in crypto participation in the Asian country.
A local media outlet reported that lawmaker Ahn Do-jae revealed that more than 9.6 million South Koreans held accounts with the country’s five major licensed exchanges—Upbit, Bithumb, Coinone, Korbit, and Gopax—by the end of last year. That figure reflects a 52.6% increase over the previous year.
Total crypto holdings across these platforms now exceed 100 trillion won (around $68 billion), signaling strong market confidence.
Interestingly, the fastest-growing segment includes older investors. Those in their 50s surged to 1.75 million, while users over 60 climbed from 371,800 to 636,700—a jump of more than 52%.
Moreover, wealth concentration among older users is also notable. Of the 9,135 users holding over 1 billion won in digital assets, over half are aged 50 or above. These investors own an average of 2.15 billion won in crypto, reinforcing the shifting demographics of Korea’s crypto elite.
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