In a decisive move to crack down on unregistered cryptocurrency exchanges operating in the country, South Korea's Financial Services Commission (FSC) has ordered Google to block access to 17 foreign crypto trading apps on its Google Play store. 

The restriction, which took effect on March 25, prevents South Korean users from downloading new versions of the affected apps or updating existing installations.‍

Regulatory Action Against Unregistered Crypto Firms

The crackdown comes in response to concerns over money laundering risks, user data security, and investor protection. The blocked platforms were engaging in operations within South Korea without proper registration, violating the country’s Specific Financial Information Act.

The law mandates that any foreign crypto exchange conducting business in South Korea must register with local authorities and adhere to strict anti-money laundering (AML) guidelines. Exchanges that fail to comply face penalties of up to five years in prison or fines of 50 million Korean won (approx. $38,000).‍

Which Crypto Exchanges Are Affected?

Among the 17 exchanges whose apps have been blocked are KuCoin, MEXC, Phemex, CoinEx, Poloniex, and BitMart. Many of these platforms have been actively attracting South Korean users by offering services in Korean language, promotional events targeting local investors, and even supporting transactions in Korean won (KRW)—factors that regulators consider indicators of domestic business activity.

The FSC has long warned that unregistered exchanges pose serious risks to South Korean users, as they lack government oversight and do not implement legally required consumer protection measures, such as segregated fund storage and compensation in the event of insolvency or hacking incidents.

The South Korean government is now pushing for similar restrictions on Apple’s App Store and is working with the Korea Communications Standards Commission to block access to unregistered crypto exchange websites. The move aligns with global efforts to enforce compliance among offshore exchanges operating without proper licenses.