South Korea removes cryptocurrency applications from Apple's digital marketplace in enforcement action

In a bid to tighten its crypto regulations, South Korea is escalating its efforts to address platforms operating outside its legal framework. The Financial Intelligence Unit (FIU) of South Korea has been at the forefront of this crackdown, working to ensure compliance with the country's strict crypto regulations.

Recently, the FIU requested Apple Korea to restrict new user access and halt updates for existing users on several unregistered crypto platforms. This action was taken on April 11, affecting foreign exchanges like KuCoin, CoinW, Bitunix, BitMEX, and KCEX, which are currently under investigation for operating unlawfully in South Korea.

Similarly, the FIU previously requested Google to block 17 unregistered Virtual Asset Service Providers (VASPs) apps on March 25. Among the blocked apps were major global exchanges like KuCoin and MEXC. The FIU also blocked access to 14 unregistered crypto apps on the Apple App Store.

The South Korean Financial Services Commission (FSC) has labeled these exchanges as unregistered VASPs. To comply with registration requirements, platforms must offer services in Korean, support transactions denominated in Korean won, and run marketing campaigns targeting South Korean residents.

The strategy aims to reinforce South Korea's strict licensing regime by addressing platforms that operate outside its legal framework. Non-compliant platforms face significant penalties, including fines of up to 50 million won and prison sentences of up to five years.

To enhance public awareness, the FIU has made a list of registered VASPs publicly available on its website. South Korean users are urged to check the registration status of platforms and withdraw any funds from unregistered services to minimize potential risks.

However, it's worth noting that as of the latest search results, there are no specific cryptocurrency exchanges listed as unregistered VASPs subject to illegal activities in South Korea.

In light of these developments, South Korean users are advised to conduct their own research and consult with a qualified financial adviser before using any crypto platform. The FSC's anti-money laundering body, the FIU, has announced it will continue efforts to block access to unregistered platforms to curb financial crime and safeguard users.

The Shib Magazine and The Shib Daily, the official media and publications of the Shiba Inu cryptocurrency project, will continue to monitor this situation and provide updates as they become available.