South Korea is ramping up its regulation of cryptocurrency companies, allowing only legally sanctioned companies to operate in the nation. This week, Google Play, in accordance with a regulatory directive, blocked 17 overseas crypto exchanges, including KuCoin, from being installed on Android phones. Existing users will no longer be able to get app updates. The Financial Intelligence Unit (FIU) is meanwhile in talks with Apple to delete unregistered crypto business apps from the App Store.
Financial Services Commission (FSC) recognized 22 illegal crypto platforms and, to affirm, 17 exchanges like KuCoin, MEXC, Phemex, BitTrue, BitGlobal, CoinW, and CoinEX have already been blocked by Google Play Store. The Financial Supervisory Service (FSS), tasked with the registrations pertaining to cryptocurrencies, informs that investors face risks—security risks if any—from these unregistered business firms. Under the FSC, “Unreported business operators could be vulnerable to risks of leakage of personal information and hacking, and are exempt from anti-money laundering management and supervision, therefore can be misused as a money laundering channel. Thus, there is the risk of destruction of users’ money and virtual assets.”
No timeline for compliance has been established by authorities yet for impacted exchanges, and their future in terms of operation is uncertain. In addition to Google’s move, South Korean officials are in talks with Apple to limit unregistered crypto business apps. The FIU and the Korea Communications Standards Commission are also coming together to act against local unregistered crypto businesses. The FSC has also cautioned that the owners of these entities may be liable for imprisonment for five years or a fine of KRW 50 million (approximately Rs. 29 lakh).
In an effort to guide investors through the legal system, the FIU lists registered crypto platforms on its website, where there are now 28 officially registered firms as of March 22. The FSC also instructed investors to check if crypto exchanges are registered prior to engaging in transactions and informed them that “Users need to check whether the virtual asset business operator they are trading with is a reported business operator and, if it is an unreported business operator, take measures such as withdrawing their own virtual assets.”
South Korea has recently intensified moves to regulate the Web3 universe, enacting the ‘Virtual Asset User Protection Act’ to enhance investor protections. The FSC also intends to open the door for corporations to engage in the Virtual Digital Asset (VDA) market under regulatory supervision. Google and Apple have already raised alarm against fraudulent crypto apps on their platforms, as scammers often use fake wallet apps and malware to defraud and steal from unsuspecting users.South Korea is ramping up its regulation of cryptocurrency companies, allowing only legally sanctioned companies to operate in the nation. This week, Google Play, in accordance with a regulatory directive, blocked 17 overseas crypto exchanges, including KuCoin, from being installed on Android phones. Existing users will no longer be able to get app updates. The Financial Intelligence Unit (FIU) is meanwhile in talks with Apple to delete unregistered crypto business apps from the App Store.
Financial Services Commission (FSC) recognized 22 illegal crypto platforms and, to affirm, 17 exchanges like KuCoin, MEXC, Phemex, BitTrue, BitGlobal, CoinW, and CoinEX have already been blocked by Google Play Store. The Financial Supervisory Service (FSS), tasked with the registrations pertaining to cryptocurrencies, informs that investors face risks—security risks if any—from these unregistered business firms. Under the FSC, “Unreported business operators could be vulnerable to risks of leakage of personal information and hacking, and are exempt from anti-money laundering management and supervision, therefore can be misused as a money laundering channel. Thus, there is the risk of destruction of users’ money and virtual assets.”
No timeline for compliance has been established by authorities yet for impacted exchanges, and their future in terms of operation is uncertain. In addition to Google’s move, South Korean officials are in talks with Apple to limit unregistered crypto business apps. The FIU and the Korea Communications Standards Commission are also coming together to act against local unregistered crypto businesses. The FSC has also cautioned that the owners of these entities may be liable for imprisonment for five years or a fine of KRW 50 million (approximately Rs. 29 lakh).
In an effort to guide investors through the legal system, the FIU lists registered crypto platforms on its website, where there are now 28 officially registered firms as of March 22. The FSC also instructed investors to check if crypto exchanges are registered prior to engaging in transactions and informed them that “Users need to check whether the virtual asset business operator they are trading with is a reported business operator and, if it is an unreported business operator, take measures such as withdrawing their own virtual assets.”
South Korea has recently intensified moves to regulate the Web3 universe, enacting the ‘Virtual Asset User Protection Act’ to enhance investor protections. The FSC also intends to open the door for corporations to engage in the Virtual Digital Asset (VDA) market under regulatory supervision. Google and Apple have already raised alarm against fraudulent crypto apps on their platforms, as scammers often use fake wallet apps and malware to defraud and steal from unsuspecting users.South Korea is ramping up its regulation of cryptocurrency companies, allowing only legally sanctioned companies to operate in the nation. This week, Google Play, in accordance with a regulatory directive, blocked 17 overseas crypto exchanges, including KuCoin, from being installed on Android phones. Existing users will no longer be able to get app updates. The Financial Intelligence Unit (FIU) is meanwhile in talks with Apple to delete unregistered crypto business apps from the App Store.
Financial Services Commission (FSC) recognized 22 illegal crypto platforms and, to affirm, 17 exchanges like KuCoin, MEXC, Phemex, BitTrue, BitGlobal, CoinW, and CoinEX have already been blocked by Google Play Store. The Financial Supervisory Service (FSS), tasked with the registrations pertaining to cryptocurrencies, informs that investors face risks—security risks if any—from these unregistered business firms. Under the FSC, “Unreported business operators could be vulnerable to risks of leakage of personal information and hacking, and are exempt from anti-money laundering management and supervision, therefore can be misused as a money laundering channel. Thus, there is the risk of destruction of users’ money and virtual assets.”
No timeline for compliance has been established by authorities yet for impacted exchanges, and their future in terms of operation is uncertain. In addition to Google’s move, South Korean officials are in talks with Apple to limit unregistered crypto business apps. The FIU and the Korea Communications Standards Commission are also coming together to act against local unregistered crypto businesses. The FSC has also cautioned that the owners of these entities may be liable for imprisonment for five years or a fine of KRW 50 million (approximately Rs. 29 lakh).
In an effort to guide investors through the legal system, the FIU lists registered crypto platforms on its website, where there are now 28 officially registered firms as of March 22. The FSC also instructed investors to check if crypto exchanges are registered prior to engaging in transactions and informed them that “Users need to check whether the virtual asset business operator they are trading with is a reported business operator and, if it is an unreported business operator, take measures such as withdrawing their own virtual assets.”
South Korea has recently intensified moves to regulate the Web3 universe, enacting the ‘Virtual Asset User Protection Act’ to enhance investor protections. The FSC also intends to open the door for corporations to engage in the Virtual Digital Asset (VDA) market under regulatory supervision. Google and Apple have already raised alarm against fraudulent crypto apps on their platforms, as scammers often use fake wallet apps and malware to defraud and steal from unsuspecting users.
