In a significant regulatory move, Apple has delisted 14 cryptocurrency applications in South Korea following a request from the country’s Financial Intelligence Unit (FIU), an agency dedicated to anti-money laundering efforts. This decision is part of a broader crackdown on foreign virtual asset operators accused of conducting unreported business activities within the nation.
The FIU has specifically targeted well-known crypto exchanges, including KuCoin and MEXC, which are now among the apps blocked from domestic access. Users who previously downloaded these applications will no longer receive updates, effectively restricting their functionality. This action mirrors a similar step taken by Google Play, which removed 17 crypto-related apps at the FIU's request just last month.
According to the FIU, the unregistered platforms pose significant risks, including potential breaches of personal data, hacks, and the facilitation of money laundering activities. Under South Korean law, any foreign virtual asset operators wishing to engage with Korean users—particularly those accepting transactions in Korean Won—must be registered. The FIU has made it clear that it will continue to block unregistered platforms to safeguard users and maintain the integrity of the financial system.
Despite these restrictions, the cryptocurrency market in South Korea is thriving. Data from the South Korean government indicates that as of late February 2025, approximately 16.29 million individuals, nearly one-third of the country's population of 52 million, have opened accounts on the major domestic exchanges, including Upbit, Bithumb, Coinone, Korbit, and Gopax.
This surge in crypto adoption comes at a time when the regulatory landscape is evolving. In a notable shift, South Korea’s Financial Services Commission announced plans to launch a pilot program in the latter half of 2025. This program will allow 3,500 corporate entities to engage in cryptocurrency investments and financial transactions, a practice that has been banned in the country since 2017. This pilot initiative reflects a growing acceptance of digital assets within the corporate sector and signals a potential relaxation of previous restrictions.
The juxtaposition of a booming crypto market with stringent regulatory measures highlights the complexities of South Korea's approach to digital currencies. While authorities are keen to protect consumers and prevent illegal activities, they also recognize the growing demand for cryptocurrency services among both individual users and businesses.
As the landscape continues to change, industry stakeholders are closely monitoring the developments. Some experts argue that while regulatory oversight is essential, overly stringent measures could stifle innovation and limit the potential benefits of cryptocurrency adoption.
In the meantime, the FIU remains vigilant, emphasizing its commitment to blocking unregistered platforms to protect users. The agency's actions come amid a backdrop of increasing interest in cryptocurrencies, with many South Koreans eager to explore investment opportunities in this rapidly evolving sector.
As the pilot program approaches, it will be interesting to see how it impacts the market and whether it leads to a more structured and regulated environment for crypto transactions in South Korea. The balance between regulation and innovation will be crucial in shaping the future of the digital asset landscape in the country.
In conclusion, the recent delisting of crypto apps by Apple and the proactive measures taken by the FIU underscore the ongoing tension between regulatory authorities and the burgeoning cryptocurrency market in South Korea. As the country moves towards a more defined regulatory framework, the implications for users and businesses alike will be significant.
