What happened?
South Korea’s Financial Intelligence Unit (FIU) has compelled Google LLC to block 17 unregistered crypto apps like KuCoin and MEXC from being accessed within the country. From March 25, 2025, these apps are inaccessible to new users on Google Play, and existing users will not receive updates. This action is part of a crackdown according to the Specific Financial Transaction Information Reporting and Use Act against foreign exchanges operating without proper registration.
Who does this affect?
This decision impacts users in South Korea who use or intend to use these unregistered crypto exchanges. It also affects foreign crypto exchanges that offer services in South Korea without registration, as they face penalties and restrictions. The enforcement affects both new and existing customers of the affected crypto platforms, limiting their ability to install or update related applications.
Why does this matter?
This move showcases South Korea’s expanding regulatory influence over the crypto market, seeking to regulate and secure the trading environment while preventing illegal financial activities. The immediate market impact includes a minor price drop in tokens like the KuCoin Token (KCS), highlighting investor sensitivity to regulatory actions. The broader implications could force crypto exchanges to tighten compliance efforts and possibly reduce their market presence if they do not adhere to local regulations.