The recent surge in enforcement follows previous actions where 16 unregistered platforms were blocked in 2022 and six in 2023, indicating ongoing efforts to regulate the growing crypto sector.

The FIU plans to continue blocking access to unreported virtual asset operators to mitigate risks associated with money laundering and protect consumers.

On April 11, 2025, South Korea's Financial Services Commission (FSC) announced the blocking of 14 cryptocurrency exchanges on the Apple Store, including notable platforms like KuCoin and MEXC.

This action is part of a broader crackdown on illegal crypto operations, which included a request to Google in March 2025 to block access to 17 similar apps.

Despite these regulatory measures, crypto adoption in South Korea is on the rise, with local exchange users surpassing 16 million by the end of March 2025, representing nearly 32% of the population.

Forecasts suggest that the number of crypto users in South Korea could reach 20 million by the end of 2025, highlighting the growing interest in digital assets amid tightening regulations.

Both Apple and Google are complying with government regulations, reflecting their commitment to safeguard users from the risks associated with unregulated crypto trading.

This crackdown is part of South Korea's efforts to regulate virtual asset operators that fail to comply with local laws, particularly the Act on Reporting and Use of Specific Financial Transaction Information.

As a result of the ban, users will be unable to download the blocked apps from the Apple Store, and existing users will not receive updates, impacting their functionality.

The enforcement actions follow a trend of increasing regulatory scrutiny, as the Financial Intelligence Unit (FIU) reported that unregulated exchanges pose significant risks of money laundering and scams.

Under South Korean anti-money laundering regulations, foreign crypto operators must register with the FIU to avoid severe penalties, including imprisonment or fines.

The banned exchanges were operating as unregistered overseas virtual asset operators, prompting the FSC to take action to safeguard users and prevent money laundering.