In a significant move to regulate the cryptocurrency market, Google has announced that starting January 28, 2025, the Google Play Store will prohibit downloads and updates for unregistered cryptocurrency exchange and custodial wallet applications in South Korea. According to the official information, this decision is part of a broader effort to enhance consumer protection and regulatory oversight in the rapidly evolving digital asset landscape.
Impact on Users and Service Providers
The new policy will impact millions of users and numerous service providers across the country, as only registered applications will be allowed on the platform. This could lead to a consolidation of the market, as smaller, unregistered players may struggle to comply with the new regulations or face removal from the app store.
Challenges of Compliance Costs
Additionally, the increased compliance costs associated with registration and adherence to regulatory standards may pose challenges for many existing service providers. As the South Korean government continues to tighten its grip on the cryptocurrency sector, stakeholders are urged to prepare for the upcoming changes and ensure their operations align with the new legal framework.
The recent listing of the USDe stablecoin on Upbit underscores the evolving regulatory landscape in South Korea, contrasting with Google's upcoming restrictions on unregistered cryptocurrency applications. For more details, see USDe listing.
