South Korea is continuing its efforts to tighten oversight of the cryptocurrency industry, this time turning its attention to mobile platforms. On April 11, the country’s Financial Services Commission (FSC) announced that 14 cryptocurrency exchanges were removed from Apple’s App Store. Among the affected platforms are KuCoin and MEXC, both of which had already been targeted by Google Play when it blocked access to 17 unregistered exchanges on March 26.

The blocked platforms are accused of operating as unregistered virtual asset service providers (VASPs) based overseas. According to a report published on April 14, the Financial Intelligence Unit (FIU) will continue pushing to restrict access to the applications and websites of such entities, citing concerns over money laundering and consumer protection. As the report explains, the objective is to “prevent money laundering and user damage” by stopping the services of operators who fail to meet local legal standards.

In addition to removing these apps from Apple’s marketplace, the FSC clarified that users will no longer be able to update existing versions. The commission emphasized that any virtual asset business operating without proper registration is committing a criminal offense. Under South Korean law, such violations can result in up to five years in prison and fines of up to 50 million won, or approximately $35,200.

The wave of enforcement stems from growing concern among regulators about the unchecked growth of unregistered crypto services within South Korea’s borders. On March 21, a report from local media outlet Hankyung revealed that both the FIU and the FSC were actively considering sanctions against platforms that continued to operate without regulatory approval. Measures under review included not only app removals but also broader access restrictions.

South Korea’s regulatory framework requires any entity involved in crypto trading, brokerage, asset management, or custody to register with the FIU. This requirement ensures that all participants in the market meet established standards for transparency and compliance. Those who ignore these rules face the possibility of swift and severe penalties.

The crackdown comes at a time when cryptocurrency usage in South Korea is surging. As of March 31, the number of crypto exchange users in the country had surpassed 16 million, representing more than 30% of the population. Industry analysts suggest that figure could grow to 20 million by the end of 2025, reflecting a broader trend of mainstream adoption despite tightening regulations.

Even public officials are increasingly involved in the crypto space. As of March 27, more than 20% of South Korean government employees reported holding digital assets, with the total value of their holdings reaching nearly $10 million. These assets range from Bitcoin and Ether to XRP and Dogecoin, showing the broad appeal of crypto across different sectors of society.

As crypto continues to cement its presence in South Korean life, the government is making it clear that legal compliance is not optional. The latest enforcement actions serve as a warning to overseas operators: enter the market on the country’s terms, or risk being shut out entirely.