South Korean supervisory authorities restrict access to 17 crypto exchanges in the Google Play Store-new measures to combat financial crime and enforce regulations

South Korean supervisory authorities restrict access to 17 crypto exchanges in the Google Play Store-new measures to combat financial crime and enforce regulations

Google Play blocks 17 foreign crypto exchanges in South Korea

On March 26, 2023, Google Play restricted access to 17 foreign crypto exchanges that are aimed at South Korean users. This decision was made at the request of the South Korean supervisory authorities to ensure compliance with local regulations. The Financial Intelligence Unit (FIU) of the South Korean Financial Services Commission (FSC) also checks sanctions against crypto exchanges that have not registered with the responsible authorities.

stricter regulations for crypto exchanges

According to the "Specified Financial Information Act", providers of virtual activities (VASP) are obliged to register with the supervisory authorities in South Korea. On March 21, 2023, the FIU announced that it was working with the Korea Communications Standards Commission (KCSC) to block access to non -registered stock exchanges. In the list published on March 26, 22 of which are not registered, 17 of which were now blocked in the Google Play Store.

Restrictions for crypto exchanges

These restrictions mean that new users can no longer download the corresponding apps and that existing users will no longer receive updates. The 17 affected exchanges include prominent platforms such as Kucoin, Mexc, Phemex, XT.com, Coinex and Bitmart. The FSC hoped that this measure would help prevent money laundering with crypto-assets and to avoid possible future damage to local users.

Cooperation with Apple Korea and KCSC

The FIU also works with Apple Korea and the KCSC to block access to the affected platforms in the App Store and on the Internet. Kucoin has explained that the developments of the regulations in South Korea are being followed. The stock exchange emphasized the importance of compliance with local laws for the sustainable growth of the crypto market, but announced no specific details on its plans for the country.

increased control over crypto platforms

This step of the South Korean supervisory authorities takes place at a time when control over crypto trading platforms in the country is reinforced. On March 20, 2023, the Seoul public prosecutor's office searched Bithumb's offices due to suspicions of financial irregularities in which the former CEO was said to have been involved. In addition, it was reported that agents were paid to list to Bithumb and Upbit, which led to further examinations of the practices on these platforms.

This reinforced focus on regulations and the monitoring of the crypto market in South Korea shows that the supervisory authorities strive to create a fair and transparent market for digital currencies and at the same time minimize the risks for investors.