In its ongoing fight against illegal crypto activities, South Korea has requested Google to block access to 17 unregistered crypto exchanges. The move reflects the country’s strict regulatory stance aimed at curbing fraud and money laundering in the digital asset space.
Google Complies with FIU’s Request
South Korea’s Financial Intelligence Unit (FIU) has instructed Google to block unregistered overseas crypto exchanges, including major names like KuCoin, MEXC, and Poloniex. Starting March 25, 2025, South Korean users will be unable to install or update apps from these platforms via the Google Play Store.
The FIU’s action follows reports of increasing enforcement against unregistered virtual asset service providers (VASPs). The crackdown isn’t new—South Korean regulators took similar steps in 2022 when they targeted 16 foreign exchanges and cut off access to crypto on-off ramps via local banks.
A History of Strict Crypto Regulations
South Korea has consistently upheld its reputation for tough crypto regulations. In 2022, the nation enforced rules that compelled exchanges to register as VASPs and comply with stringent anti-money laundering (AML) standards. Even South Korea’s largest exchange, Upbit, had to temporarily suspend some services to align with these regulations.
The recent ban highlights a growing trend where nations intensify oversight of international platforms to prevent illicit activities. However, it also raises concerns about the accessibility of crypto services for retail users.
Global Ripple Effects of Crypto Restrictions
South Korea’s latest move mirrors actions taken in India, where authorities blocked platforms like Binance, Kraken, and KuCoin in January 2024. Similarly, the U.S. has leaned into enforcement, targeting unregistered exchanges like Binance and BitMEX under the leadership of former SEC Chair Gary Gensler.
In the European Union (EU), the Markets in Crypto Assets (MiCA) legislation bans anonymous crypto transactions and imposes strict regulations on exchanges. While it stops short of banning platforms outright, it reflects growing pressure on the industry to prioritise compliance over anonymity.
The Path Ahead for Crypto Platforms
Although the U.S. and EU have yet to issue blanket bans on foreign exchanges, regulatory pressures continue to mount. South Korea’s decisive action could prompt other nations to adopt similar measures, further tightening the global crypto ecosystem.
As crypto regulations evolve, exchanges must prioritise transparency and compliance to thrive in increasingly scrutinised markets. Whether South Korea’s bold stance will become a global norm remains to be seen, but the message is clear—unchecked crypto operations are facing a narrowing window.
