KuCoin, MEXC, and other cryptocurrency exchanges have been removed from the Apple App Store in South Korea for not registering with local authorities. The Financial Services Commission reported that Apple started blocking these apps on April 11 after a request from the Financial Intelligence Unit (FIU). This action reflects an effort to regulate unregistered virtual asset platforms in the country.
As a result of these restrictions, new users can no longer download the affected apps, while existing users will no longer receive future updates. These exchanges continued offering services to South Korean users despite not being registered with the country’s financial regulators, which prompted the intervention.
The Financial Intelligence Unit clarified that these platforms were effectively operating within South Korea, as evidenced by their Korean-language websites, local marketing campaigns, and facilitation of transactions in Korean won—activities that qualify as conducting domestic business under the country’s regulatory framework.
Authorities have emphasized that these restrictions are vital for safeguarding users and reducing their exposure to risks such as hacking, data breaches, and potential asset misuse. Unregistered exchanges pose significant risks without proper regulatory oversight, especially concerning consumer protection and financial security.
The FIU emphasized that unregistered virtual asset platforms often fail to implement crucial user protection measures, such as keeping customer funds separate from operational accounts. This lack of safeguards heightens the risk of loss due to fraud, insolvency, or service disruptions, with limited recovery options available for users. As a result, the FIU urged individuals to check the registration status of virtual asset operators and recommended withdrawing assets if they find themselves using an unregistered platform.
In a related development, South Korea’s cryptocurrency exchange, Upbit, has faced a partial business suspension by the FIU, which has temporarily halted new customers from conducting crypto deposits and withdrawals. This move underscores the FIU’s growing commitment to tightening regulatory enforcement in the digital asset space.
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