South Korean authorities have restricted access to several foreign cryptocurrency exchange apps, including Poloniex and KuCoin, on Google Play, citing their unregistered operations.
New Restrictions for Crypto Exchanges
As of March 26, the Financial Intelligence Unit announced in a press release that access to 17 apps, including Poloniex, KuCoin, and MEXC, has been restricted. Users in Korea can no longer install these apps or receive updates.
Reasons for the Ban
According to South Korea's crypto regulations, all exchanges must register with regulators. The law applies to foreign companies if they conduct business in Korea. Exchanges may be considered operational in Korea if they provide Korean-language content, conduct marketing targeted at Korean users, or support payments in Korean won. Unregistered platforms pose risks such as personal information leaks and potential money laundering.
Future of Crypto Apps in Korea
The agency expects the ban to help prevent user damage and curb money laundering through virtual assets. Discussions are ongoing with Apple Korea and the Korea Communications Standards Commission to apply similar restrictions to App Store apps and websites.
These measures highlight the tightening of cryptocurrency operations regulation in South Korea, as similar actions are being taken in other countries like Japan and China.
