The Financial Services Commission (FSC) of South Korea recently announced that starting from March 25, 2025, Google has implemented access restrictions on its Google Play app store for 17 foreign cryptocurrency trading platforms at the request of the South Korean government. These exchanges include Kucoin, MEXC, Phemex, XT.com, Bitrue, CoinW, CoinEx, ZoomEX, Poloniex, BTCC, DigiFinex, Pionex, Blofin, Apex Pro, CoinCatch, WEEX, and BitMart.
This means that new users in South Korea can no longer search, download, or install these exchanges through Google Play. Additionally, existing users who have already installed these apps will be unable to update them, significantly limiting the accessibility and continuity of services for these platforms in the Korean market. (Of course, using a VPN might provide a workaround, but it still increases user operational difficulties)
FSC: These Exchanges Are Not Registered in South Korea
Regarding this regulatory action, the FSC pointed out that these platforms have been actively marketing and providing services to local Korean traders without completing the registration procedures in accordance with Korean law, which constitutes a clear violation of South Korean regulatory provisions.
The FSC also emphasized that the action against these 17 exchanges is primarily aimed at preventing financial crimes such as money laundering and terrorist financing, and protecting domestic investors from potential fraud and market manipulation risks.
Not the First Time Cracking Down on Exchanges
South Korea has one of the strictest cryptocurrency regulatory frameworks globally, with its core legislation being the Act on Reporting and Using Specified Financial Transaction Information. This law requires all Virtual Asset Service Providers (VASPs) operating in South Korea or providing services to Korean residents, regardless of their headquarters location, to register with the Financial Intelligence Unit (FIU).
In fact, this is not the first time South Korean authorities have taken a hard stance against unregistered foreign exchanges. As early as 2022, the FIU had identified and reported 16 unregistered platforms and implemented restrictions, including website blocking. In 2023, an additional 6 platforms were added to the restricted list.
Crypto Regulation in South Korea Tightening?
Pessimists view this latest enforcement action as further evidence of South Korea's already strict cryptocurrency regulation, suggesting that targeting 17 exchanges will not only limit local users' trading options but potentially stifle innovation.
However, some take a more positive view. In January, South Korean regulators published their 2025 work plan, which includes gradually opening virtual asset trading to corporate entities and promoting the second phase of regulatory legislation, focusing on stablecoin management, listing standards, and exchange regulations to further improve the market regulatory framework. Earlier this month, the FSC also stated in a meeting with local crypto industry experts that they plan to release a comprehensive guide for listed companies and professional investors by the third quarter, and expect to launch guidelines for non-profit organizations and crypto exchanges as early as April.
Therefore, the recent series of regulatory measures indicates that the South Korean government is working to create a more regulated, transparent, and structured market environment - precisely the regulatory clarity that many traditional financial (TradFi) institutions seek before entering the digital asset space.
While a strictly regulated market may lack some of the early "wild west" freedoms, it could provide the confidence and reduced compliance risk that large institutional investors require. For the long-term development of cryptocurrencies in South Korea, this approach might be beneficial, though more time is needed to observe its effects.
