- South Korea blocks 14 crypto apps on Apple’s App Store
- Several weeks earlier, the country banned 17 crypto apps on Google Play Store
- South Korea has strict financial regulations, and VASPs that fail to comply risk a 50 million won fine or jail time of up to 5 years
Today, South Korea’s Financial Intelligence Unit (FIU), operating under the Financial Services Commission (FSC), intensified its regulatory actions by blocking access to 14 mobile applications on Apple’s App Store. These were operated by ‘unregistered’ foreign Virtual Asset Service Providers (VASPs), including exchanges such as KuCoin and MEXC.
Something similar happened in late March when the FIU collaborated with Google to restrict 17 unregistered crypto apps on the Google Play Store.
How Strict Are South Korea’s Crypto Rules?
The country is known for strict financial regulations, including the crypto industry. South Korea mandates that all VASPs offering services to its residents must register with the FIU, adhering to the Specific Financial Transaction Information Reporting and Use Act. Failure to do so could result in huge penalties, including fines of up to 50 million won (roughly $37,000) or imprisonment for up to five years.
Combining the previous crypto app ban on the Google Play Store and today’s Apple App Store, the blocked applications include services from exchanges like KuCoin, MEXC, Phemex, CoinEx, and Poloniex.
South Korean authorities stated that blocking these apps aims to curb unregistered platforms’ operations within the country. All these restrictions and regulations are a way for law enforcement to prevent money laundering, protect investors, and maintain market integrity.
What Compliance Hurdles Do Crypto Firms Face?
FIU’s monitoring and enforcement of the rules likely won’t stop anytime soon. Currently, those who want to use cryptocurrency exchanges must verify their accounts using real-name bank accounts. On the other hand, exchanges are required to implement strong Anti-money laundering (AML) and Know Your Customer (KYC) protocols.
The mentioned VASPs must obtain ISMS certification from the Korea Internet & Security Agency (KISA), and they must follow the Financial Action Task Force (FATF) guidelines. This means that VASPs must collect and share specific information about the originator and beneficiary of virtual asset transfers exceeding 1 million won (around $800).
In addition, the country has a ban on institutional crypto trading, but the plan is to slowly remove the limitations during this year. This phased rollout will allow non-profits, universities, law enforcement agencies, and listed companies to trade crypto assets.
Disclaimer: The information presented in this article is for informational and educational purposes only. The article does not constitute financial advice or advice of any kind. Coin Edition is not responsible for any losses incurred as a result of the utilization of content, products, or services mentioned. Readers are advised to exercise caution before taking any action related to the company.
