South Korea Cracks Down on Unregistered Crypto Exchanges
The Financial Intelligence Unit (FIU) in South Korea has taken action against 17 overseas crypto exchange apps on Google Play for operating without proper registration, as reported in a March 26 announcement.
Affected Major Exchanges
- KuCoin
- MEXC
- Phemex
- XT
- CoinEx
- BitMart
- Poloniex
South Korean crypto users are now unable to download these apps, and existing users will not receive updates in the future. The move aims to reduce money laundering risks and protect users from unregulated platforms.
Legal Requirement for Crypto Exchanges in South Korea
All crypto exchanges in South Korea are required to register with regulators before offering their services. This rule extends to foreign platforms that have Korean-language interfaces, conduct marketing targeting Korean users, or process transactions in Korean won.
Unregistered operators meeting any of these criteria are considered to be conducting business within Korea, according to the FIU. Violators could face legal consequences, including up to five years in prison or fines of up to 50 million won.
Enforcement Measures
To strengthen enforcement, the FIU is collaborating 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 for users to verify the registration status of their chosen platform.
Crypto Industry Growth in South Korea
Despite regulatory actions, South Korea has seen a significant increase in crypto participation. Lawmaker Ahn Do-jae disclosed that over 9.6 million South Koreans held accounts with the country’s major licensed exchanges by the end of last year, marking a 52.6% growth from the previous year.
The total crypto holdings across these platforms have exceeded 100 trillion won, indicating strong market confidence. Notably, older investors have become a rapidly growing segment, with users in their 50s and above 60 showing substantial increases in participation.
Furthermore, wealth concentration among older users is evident, with a significant portion of investors holding over 1 billion won in digital assets being aged 50 or above. This demographic shift highlights the changing landscape of Korea’s crypto elite.
