Apple App Store Restricts Access to Cryptocurrency Apps Following South Korean Regulatory Pressure

Apple has precluded access to 14 crypto applications from its South Korean app store. This move comes in response to a request from South Korea’s Financial Services Commission (FSC). The FSC further claimed that the exchanges named on the list were conducting illegal business by not registering with requisite regulatory authorities. The move is indicative of the South Korean government’s growing watchfulness over local cryptocurrency activities.

So, the main question is why didn’t these exchanges report to the Financial Information Analysis Service (FIU) ahead of time. This is now a legal requirement for virtual asset operators in South Korea. Our regulations help to further promote transparency, innovation, and prevent illegal financial activity within the cryptocurrency market.

Before Apple took action, the FSC had urged Google to remove access to 17 other crypto-related apps. Google has already complied with the request, rolling out the block on its app store as of March 25. Apple’s block goes into effect on April 11. This change would make it even harder for South Korean users to access unregistered cryptocurrency platforms.

The 14 exchanges included in Apple’s block include KuCoin and MEXC, in addition to a dozen other Chinese exchanges by name. These platforms are now inaccessible to South Korean users through the Apple App Store, pending proper registration and compliance with local regulations.

Noncompliance with the registration requirement comes with harsh punishment under South Korean law. Unregistered operators of virtual asset platforms are punishable by up to five years in prison. This strong enforcement action showcases the FSC’s determination to regulate the rapidly developing cryptocurrency industry while protecting investors.

The FSC has been working hard to prevent domestic access to unreported virtual asset operators. This program is the latest move in its bigger regulatory push. The commission further found 22 foreign unregistered virtual asset operators are providing business services within South Korea while failing to properly report domestic business activities. In 2023, the FSC found six of these entities.