On April 14, 2025, South Korea’s Financial Intelligence Unit (FIU) blocked 14 unregistered cryptocurrency exchanges, including KuCoin and MEXC, from Apple’s App Store, impacting residents’ access to certain crypto applications. This move enforces compliance with financial regulations and combats illegal operations like money laundering. The actions follow a March crackdown on 17 apps from Google Play. The Financial Services Commission (FSC) is leading the initiative to ensure compliance. These measures aim to curb illicit activities, protect market integrity, and reduce financial crimes like money laundering. Key Points:**
– All Virtual Asset Service Providers in South Korea are required to register with the country’s specific financial regulations.
– Exchanges must implement Anti-Money Laundering (AML) and Know Your Customer (KYC) protocols and secure ISMS certification from the Korea Internet & Security Agency (KISA).
– Non-compliance can lead to severe penalties, including fines and imprisonment.
The immediate effects include restricted access for South Korean users to download or update crypto apps from blocked exchanges.
Users are advised to withdraw assets to avoid complications. The actions have sparked frustration among users on platforms like Reddit and Telegram. Market shifts may occur as users migrate to compliant platforms. The long-term consequences could involve stricter regulations and enforcement across the cryptocurrency landscape, potentially influencing other jurisdictions. Historical precedents suggest temporary market fluctuations during similar crackdowns.