South Korea continues to tighten regulations on the cryptocurrency market as the Financial Intelligence Unit (FIU) requests Apple to block 14 apps from unregistered foreign digital asset operators. Among them, KuCoin and MEXC – two major exchanges – have been blocked from domestic access since April 11. Is this move a sign of a strong 'cleaning' of the crypto market in South Korea? Let's explore the details.


South Korea Blocks 14 Crypto Apps on the Apple Store

According to an official announcement from #FIU South Korea on Monday (April 14, 2025), 14 apps belonging to unregistered foreign digital asset operators have been blocked on the Apple Store in the country. KuCoin and MEXC are two notable names on the list, with access to their apps being blocked from April 11. CoinDesk has reached out to KuCoin and MEXC for comments but has not received a response [Source: CoinDesk].


This move is part of South Korea's long-term campaign to prevent illegal operations by crypto providers. In March 2025, the FIU also requested Google to block 17 similar apps on Google Play, with reports suggesting that the agency is planning to block some exchange websites as well. In total, the FIU targeted 16 companies in 2022 and 6 companies in 2023 for unreported activities, while implementing access blocking measures through both websites and mobile applications.


Strict Legal Regulations in South Korea

According to the Specific Financial Transaction Reporting and Information Utilization Act, foreign digital asset operators wishing to operate in South Korea must register with the FIU. Unreported activities are considered illegal and may face criminal penalties. Specifically, unregistered operators could face prison sentences of up to 5 years or fines of up to 50 million won (approximately 35,200 USD), according to reports from the FSC [Source: Cointelegraph].


The FIU emphasizes that blocking these apps is aimed at protecting users and minimizing the risk of money laundering. The agency warns that unregistered platforms may pose risks of personal information leaks, hacking, or loss of digital assets, and could be exploited for money laundering. The FIU also recommends users check the list of registered operators on its website and withdraw assets immediately if using illegal platforms.


Tightening Crypto Regulation Campaign

South Korea has long imposed strict regulations on the crypto market. The move to block 14 apps on the Apple Store comes just a month after Google Play restricted access to 17 unregistered exchanges, including KuCoin and MEXC, on March 26, 2025. The FSC has published a list of 22 unregistered platforms operating in South Korea, of which 17 platforms have been blocked on Google Play. Users in South Korea cannot download these apps from #AppleStore , and those who had previously installed them cannot update them.


The FIU stated that it will continue to collaborate with relevant organizations to block domestic access through mobile apps and websites of unreported operators. The goal is to protect users and minimize the risk of money laundering as the number of crypto users in South Korea is rapidly increasing. As of March 31, 2025, more than 16 million people – equivalent to 30% of the population – have used crypto exchanges, and this number is projected to exceed 20 million by the end of 2025.


Impact on the Crypto Market in South Korea

Blocking unregistered foreign exchanges like KuCoin and MEXC could strengthen the position of domestic exchanges like Upbit, which currently dominate the South Korean market. However, this move also poses challenges for users, particularly investors who have stored assets on the blocked platforms. The inability to update the app or access services may disrupt trading and pose risks of asset loss.


On the other hand, South Korea's strict regulations may create a more transparent legal environment, attracting participation from traditional financial institutions (TradFi). This could enhance liquidity and market growth in the long term, especially as over 20% of public officials in South Korea own cryptocurrencies with a total value of 9.8 million USD as of March 27, 2025, including Bitcoin, Ethereum, XRP, and Dogecoin.


Future Prospects

The FIU is committed to continuing to block unreported digital asset operators to protect users and prevent money laundering. However, with the increasing popularity of crypto in South Korea, foreign operators like KuCoin and MEXC may seek to comply with regulations to return to the market. In the meantime, investors need to exercise caution, check the legality of platforms before trading, and be ready to withdraw assets if necessary.


Conclusion: Is South Korea 'Shutting the Door' on International Crypto?

South Korea's blocking of 14 crypto apps on the Apple Store, including KuCoin and MEXC, is evidence of its efforts to tightly control the cryptocurrency market. While this may create difficulties for users in the short term, it also opens up opportunities for a more transparent and safer market. Will foreign exchanges be able to adapt to return to South Korea, or is this a sign of a 'closing door' to international crypto? Investors need to closely monitor to protect their assets.


Risk Warning: Crypto investment carries high risks due to price volatility and legal uncertainties. Please consider carefully before participating.#anhbacong