South Korea has intensified its crackdown on unregistered crypto exchanges by requesting Google to block access to 17 non-compliant platforms. This move aligns with the nation’s broader efforts to combat illicit financial activities in the digital asset space, echoing similar actions taken by India while differing from the regulatory approaches in the U.S. and EU.
Key Highlights:
- Google has blocked access to 17 unregistered crypto exchanges, including KuCoin, Poloniex, and MEXC, in South Korea.
- India took similar action against Binance, Kraken, and other platforms earlier in 2024.
- The U.S. and EU are unlikely to enforce similar measures but continue to strengthen regulations.
South Korea Cracks Down on Unregistered Crypto Exchanges
In an ongoing effort to curb illicit crypto activities, South Korea has called on Google to restrict access to 17 overseas cryptocurrency exchanges that failed to comply with local registration laws. The move is part of the government’s broader strategy to combat fraud, scams, and money laundering in the digital asset space.
Google Responds to Regulatory Pressure
South Korea’s Financial Intelligence Unit (FIU), a division of the Financial Services Commission (FSC), formally requested that Google block unregistered virtual asset service providers (VASPs) from its Play Store. As a result, beginning March 25, 2025, South Korean users will be unable to download or update the apps of platforms such as KuCoin, Poloniex, and MEXC.
This marks another decisive step by the South Korean government, which previously cracked down on 16 foreign crypto exchanges in 2022. By working alongside local banks and payment providers, authorities effectively restricted access to crypto trading services that bypassed regulatory oversight.
Also Read: Top White Label Crypto Exchange Providers
A Stringent Approach to Crypto Regulation
South Korea is known for its strict stance on cryptocurrency regulations, often enforcing measures that disrupt even domestic operations. The country’s largest exchange, Upbit, has faced regulatory scrutiny in the past, leading to temporary suspensions of some of its services.
The latest enforcement efforts align with similar crackdowns in other jurisdictions. Earlier in 2024, India blocked access to major crypto platforms, including Binance and Kraken, reinforcing its commitment to regulatory control.
An South Korea’s Financial Intelligence Unit (FIU) official said, “We are currently reviewing blocking access to unreported overseas exchanges that are providing services to domestic investors through consultation with the Korea Communications Standards Commission,” adding, “We are organizing damage cases and related data to strengthen communication between authorities, and we expect to see tangible measures taken within this year.
Will Other Countries Follow Suit?
While South Korea and India have taken direct actions against non-compliant exchanges, major markets like the United States and the European Union (EU) seem to be opting for a different route. Instead of outright bans, these regions are enforcing stricter compliance measures and broad regulatory frameworks.
In the U.S., the Securities and Exchange Commission (SEC) has relied heavily on enforcement actions against platforms operating without proper registration. The former SEC Chair, Gary Gensler, notably adopted an aggressive stance against companies like Binance and BitMEX.
Meanwhile, the EU’s Markets in Crypto Assets (MiCA) regulation has introduced new compliance requirements, including a ban on anonymous crypto transactions. While these measures add pressure on exchanges, they stop short of blocking platforms outright.
Also Read: Top Crypto Payment Processors to Watch Out
The Future of Crypto Regulation
Despite South Korea’s latest crackdown, global trends indicate a shift towards structured regulations rather than sweeping bans. Instead of forcing platforms out, authorities in many regions are leaning towards enforcing transparency, investor protection, and anti-money laundering measures.
As governments continue to refine their approach to crypto oversight, the industry faces an evolving regulatory landscape—one that could ultimately shape the future of digital finance worldwide.
