Apple has restricted domestic access to 14 crypto apps in South Korea in response to a request from South Korea’s Financial Intelligence Unit (FIU), an anti-money laundering agency. This was aimed at foreign businesses providing virtual asset services whom the FIU has accused of operating unregistered, including recognized exchanges KuCoin and MEXC.
Google Play had taken similar action previously, and removed 17 crypto-related apps in March on a request from the FIU, as per reports. The affected apps cannot be downloaded and existing users cannot get updates.
The FIU noted that unregistered platforms create risks such as personal data breaches, hacks, and could be used for money laundering. Under South Korean law, foreign virtual asset operators must register when they conduct business with Korean users, including accepting Korean Won and advertising to Korean consumers.
Despite these crackdowns, South Korea’s domestic crypto market is booming. There are over 16.29 account holders, or nearly one-third of the population, have opened accounts or user accounts on the major domestic exchanges of Upbit, Bithumb, and Coinone. While at the same time, regulatory attitudes are also changing.
The Financial Services Commission recently announced they would start a pilot program to allow 3,500 corporate entities to start investing in crypto at the end of 2025. The FIU said they will continue to block unregistered platforms to protect users and prevent unlawful financial activities.
