The Financial Intelligence Unit (FIU) of Zuid -Korea has blocked access to 17 overseas crypto -exchange apps on Google Play for working without the correct registration, according to an announcement of 26 March.
Large exchanges, such as Kucin, Mexc, Phemex, XT, Coinex, Bitmart and Polonenex, are among the affected platforms.
According to the statement, South Korean Crypto users can no longer download these apps, and those they already have will not receive future updates.
The authorities argued that this step would help to reduce money laundering and protect users from non -regulated platforms.
The South Korean law requires that all crypto grants register with supervisors before they offer services. This applies to foreign platforms if they offer Korean talent interfaces, perform marketing campaigns that are aimed at Korean users or process transactions in Korean won.
The FIU stated that non -registered operators who meet one of these criteria are considered matters in Korea.
The agency warned that operators of non -registered stock markets can have legal consequences, including a maximum of five years in prison or fines of up to 50 million (around $ 34,150).
To increase enforcement, the FIU now works together with Apple Korea and the Korea Communications Standards Commission to limit access to Apple’s App Store and to block associated websites.
The agency also maintains a public database with conforming exchanges, so that users can check whether their chosen platform has been registered. The FIU advises users to immediately withdraw their assets if an exchange is not mentioned.
Crypto -growth in South Korea
This regulatory clampdown comes in the midst of a strong increase in crypto participation in the Asian country.
A local media outlet reported that the legislator Ahn Do-Jae revealed that more than 9.6 million South Koreans took accounts for the five large licensed exchanges of the Land-Abbit, Bithumb, Coinone, Korbit and Gopax-Eind last year. That figure reflects an increase of 52.6% compared to the previous year.
The total number of crypto holdings on these platforms is now exceeding 100 trillion (around $ 68 billion), which indicates strong market confidence.
Interesting is that the fastest growing segment includes older investors. Those in the fifty rose to 1.75 million, while users older than 60 climbs from 371,800 to 636,700 – a jump of more than 52%.
Moreover, the wealth concentration for older users is also remarkable. Of the 9,135 users with more than 1 billion won in digital assets, are more than half of 50 years or older. These investors have an average of 2.15 billion won in crypto, which strengthens the shifting demography of the Crypto elite of Korea.