Cryptocurrency exchanges KuCoin and MEXC, along with 12 other platforms, have been removed from the App Store in South Korea due to regulatory violations.
Situation of App Removal
According to an April 14 report from South Korea’s Financial Services Commission, Apple began blocking access to apps on April 11 following a request from the country’s Financial Intelligence Unit. As a result, new users will no longer be able to download the apps, while existing users won’t receive future updates.
Cryptocurrency Regulation in South Korea
The Financial Intelligence Unit states that these platforms were effectively conducting business in South Korea by offering Korean-language websites and running local marketing campaigns. Under anti-money laundering regulations, any foreign crypto operator engaging in such practices is required to register, with non-compliance leading to criminal penalties.
Impact on Users and Market
Authorities indicate that these restrictions are aimed at protecting users and reducing risks associated with fraud and data breaches. Without regulatory oversight, unregistered exchanges pose serious threats to consumer protection. Users are urged to check if the operator they are transacting with is registered.
The need for user protection is increasingly underscored against the backdrop of rising cryptocurrency popularity in South Korea, where the number of local exchange users has surpassed 16 million.
