South Korea’s Financial Intelligence Unit (FIU) has recently taken action against offshore crypto exchanges operating without regulatory approval. In a new directive issued on April 14, the agency asked Apple to restrict access to 14 mobile applications linked to unregistered digital asset platforms on its App Store. The FIU’s list includes major exchanges such as KuCoin, MEXC, Phemex, BitMart, CoinEx, Poloniex, BitTrue, Blofin, CoinW, BTCC, ZoomEX, and CoinCatch. This move follows a similar action against unregistered crypto apps on the Google Play Store two weeks earlier.
According to the agency, these platforms failed to register under South Korea’s digital asset regulations, which require exchanges to comply with anti-money laundering (AML) laws and register with local authorities. The rules apply to any foreign operator offering services in Korean, conducting local marketing campaigns, or facilitating transactions in Korean Won. The FIU emphasized that the restrictions aim to protect consumers and minimize exposure to financial crime, stating that it will continue coordinating with relevant institutions to block access to unregistered platforms through mobile and web channels.
Non-compliant exchanges may face legal consequences, including up to five years in prison or fines of up to 50 million Korean won (around $35,000). To support consumer protection, the regulator has made a list of registered exchanges publicly accessible and urged users to withdraw their assets from unregistered platforms to avoid potential losses. This enforcement effort reflects a broader commitment by South Korean authorities to regulate offshore platforms and create a safer digital asset market.
The crackdown comes amid major South Korean banks urging regulators to allow more room for partnerships with crypto firms, indicating a growing demand for clearer compliance frameworks within the industry. By taking action against unregistered exchanges and enforcing regulations, South Korea aims to ensure the safety and security of its digital asset market. Users are encouraged to be vigilant and only trade on registered exchanges to avoid potential risks associated with unregulated platforms.
