South Korea Asks Apple to Remove Crypto Apps in Regulatory Crackdown

South Korea’s Financial Services Commission (FSC) is intensifying efforts to block unregistered digital asset platforms by targeting mobile app stores.

The FSC announced it had requested Apple to remove 14 cryptocurrency exchange applications from its store, including KuCoin and MEXC, as part of a broader enforcement push.

According to FSC, the exchanges were classified as unregistered virtual asset service providers (VASPs) operating illegally in the country. The Financial Information Analysis Institution (FIU), the FSC’s anti-money laundering arm, stated it will continue to block access to mobile apps and websites of unregistered firms to prevent financial crime and protect users.

This move follows a similar request made to Google, which blocked 17 apps tied to unregistered exchanges — including KuCoin and MEXC — from its Play Store on March 26. The FSC has now identified 22 platforms in violation, most of which have been banned on Google’s marketplace.

Once removed, Apple Store users in South Korea will no longer be able to download the affected apps, while existing users will be blocked from receiving updates. The FSC reiterated that conducting unregistered virtual asset business is a criminal offense, carrying penalties of up to five years in prison and fines reaching 50 million won (roughly $35,200).

Sanctions Loom for Unregistered VASPs

In March, local outlet Hankyung reported that both the FIU and FSC were considering sanctions beyond app blocks, including legal actions against firms providing crypto trading, custody, and brokerage services without registering with the FIU. Under South Korean law, such entities are required to report their activities or face regulatory punishment.

As of March 31, over 16 million South Koreans — nearly one-third of the population — were using crypto exchanges, a number that industry watchers expect to exceed 20 million by year-end.

The scrutiny comes amid growing concerns over both foreign and domestic crypto exchanges. On March 20, prosecutors raided South Korean exchange Bithumb, investigating allegations that its former CEO, Kim Dae-sik, embezzled company funds to buy an apartment. The exchange denied any wrongdoing, stating that Kim repaid the embezzled funds with a loan.

South Korea is also seeing greater adoption of crypto among public officials. Recent disclosures revealed that more than 20% of government personnel hold digital assets, collectively worth nearly $10 million. Holdings included Bitcoin, Ether, and other cryptocurrencies.