Google Play has blocked 17 overseas cryptocurrency exchanges in South Korea

After the South Korean government asked them to, Google Play has blocked 17 overseas cryptocurrency exchanges in South Korea. Since March 25

Google Play has blocked 17 overseas cryptocurrency exchanges in South Korea following a request from the government, reports Wu Blockchain.

Since March 25, South Korean users cannot download or update apps for platforms like KuCoin, MEXC, and Poloniex after the country’s Financial Services Commission (FSC) ordered the block.

The platforms failed to register as Virtual Asset Service Providers (VASPs) according to local laws and continued to offer services in the Korean language, advertise to local users, and enable Korean won transactions despite warnings from the authorities.

“Since March 25, at the request of the South Korean government, Google has implemented domestic access restrictions on 17 exchanges that are not registered in South Korea. Users cannot install new related applications or update them, including KuCoin, MEXC, Phemex, XT, Biture, CoinW, CoinEX, ZoomEX, Poloniex, BTCC, DigiFinex, Pionex, Blofin, Apex Pro, CoinCatch, WEEX, and BitMart,” said Wu Blockchain.

The move effectively strengthens the dominance of domestic exchange Upbit, which already controls over 70% of the country’s crypto trading market.

Those who already have the blocked apps can still use their accounts but won’t receive updates, which will make the apps function poorly over time.

The block follows a previous measure that saw 16 exchanges blocked in 2022 and six more in 2023. Officials are now working with Apple Korea and the Korea Communications Standards Commission (KCSC) to extend these blocks to the App Store and relevant websites.

The FSC stated that these measures help in the fight against money laundering and protect investors from fraud. Companies that don’t comply with the regulations can be fined up to 50 million won (about $37,000) or face imprisonment.

“South Korea is one of the most active places when it comes to crypto trading, and we put great value into this market,” a KuCoin spokesperson told Cointelegraph. “We will stick with our commitment to compliance, not only to South Korea, but other regions too, to serve our users with trusted, secured and innovative products and services.”

The move by the South Korean government to block major crypto platforms like KuCoin, MEXC, and Phemex comes as no surprise.

Earlier this year, the country's financial regulators announced their intention to shut down any crypto exchange that fails to register as a VASP by March 25.

The move is part of a broader crackdown on the cryptocurrency industry in South Korea, which has seen a surge in recent years. The country's youth are engaging with crypto in record numbers, leading to a booming market despite a lack of interest from older generations.

The new rules also require crypto exchanges to segregate customer assets and maintain minimum capital requirements. These regulations are said to be more stringent than those in other major financial markets like the United States and the European Union, where regulators are working on broader rules for the crypto industry.

Financial authorities are also investigating other issues within the South Korean crypto scene. On March 20, prosecutors raided Bithumb, one of the country's largest exchanges, after a former board member allegedly embezzled company funds to purchase a personal apartment.

The heightened scrutiny from financial authorities comes amid the increasing popularity of crypto among the South Korean population. With over 30% of the country's population engaging in cryptocurrency trading, exchange deposits doubled in the latter half of 2023.

Some experts suggest that the stricter rules might actually serve to attract large investors who prefer clear regulations before committing their funds to digital assets.