South Korea Tightens Crypto Grip, Blocks KuCoin and MEXC on Apple Store

South Korea is ramping up its efforts to police the crypto industry by extending its crackdown on unregistered foreign exchanges. On April 11, the Financial Services Commission (FSC) confirmed that 14 crypto apps, including major names like KuCoin and MEXC, have been blocked from the Apple Store.

This move follows a similar takedown on Google Play last month, signaling a coordinated regulatory effort to keep unauthorized digital asset platforms away from Korean users.

Apple Store Crackdown Widens After Google Ban

A report published by the FSC on April 14 reveals the reason behind the move: the affected exchanges are accused of operating as unregistered overseas virtual asset service providers (VASPs). Under South Korea regulatory framework, any platform offering crypto sales, custody, or management to Korean citizens must be registered with the Financial Intelligence Unit (FIU). 

The FSC has made it clear that noncompliance isn’t just a minor infraction—it’s a criminal offense. Violators face up to five years behind bars or a fine of 50 million won (about $35,200).

The FSC and FIU also announced that they’ll continue blocking access to websites and apps associated with such exchanges to prevent money laundering and protect users from potential losses.

Rising User Base Spurs Regulatory Urgency

The urgency behind South Korea’s aggressive stance is tied to the nation’s growing crypto user base. As of March 31, more than 16 million Koreans—over 30% of the population—are active users on crypto exchanges. 

Industry insiders anticipate that number could swell to over 20 million by the end of 2025, prompting regulators to act swiftly in ensuring market stability and consumer protection.

The crackdown isn’t limited to apps. South Korea officials have been closely monitoring market players since March, when local media reported that both the FSC and FIU were weighing sanctions against non-compliant operators. 

The sanctions now materializing include both app and internet site restrictions, making it increasingly difficult for unregistered exchanges to do business in the country.

Notably, the influence of crypto extends far beyond retail investors. Recent disclosures show that more than 20% of South Korean public officials own digital assets, with their holdings totaling $9.8 million as of late March. Popular tokens in these portfolios include Bitcoin, Ether, XRP, and even Dogecoin—highlighting just how embedded crypto has become in Korean society.