South Korea Tightens Crypto Regulations: Google Play Store to Remove Unregistered Overseas Crypto Exchange Apps

January 16 News, Korea's Google Play Store is about to implement new compliance policies for crypto assets. Overseas cryptocurrency exchanges and related software wallets that are not registered within Korea's regulatory framework will be prohibited from listing or updating applications in Korea. This move is seen as an important signal of the continued tightening of Korea's digital asset regulations.

According to the latest cryptocurrency exchange and wallet service policies announced by Google, all platforms wishing to offer download and update services in Korea must first complete Virtual Asset Service Provider (VASP) registration with the Korea Financial Intelligence Unit (FIU). Overseas crypto platforms that do not meet compliance requirements will have their applications removed from the Korea Google Play Store starting January 28, and Android users will be unable to perform new installations or version upgrades.

Currently, only a few Korean domestic crypto platforms have completed the FIU registration process and can continue to operate normally within the app store. In contrast, many overseas cryptocurrency trading platforms targeting the global market face high compliance costs and strict anti-money laundering and information security requirements, making it nearly impossible to complete local registration in Korea in the short term. This also means that Korean users' channels to access overseas crypto services via mobile devices will be significantly restricted.

Regulators emphasize that this policy does not directly cut off user access. Korean investors can still access relevant platforms through desktop or mobile browsers without relying on native applications to operate. However, industry experts generally believe that future restrictions may extend further to web access and even cover the Apple App Store, forming a more comprehensive compliance barrier.

This change continues Korea's previous regulatory actions against overseas crypto platforms, including banning unregistered institutions from providing Korean-language services, marketing to Korean users, or directly participating in Korean won-related transactions. Korean media pointed out that the new regulations could have a significant impact on retail investors who rely on overseas platforms for high-leverage trading, cross-platform arbitrage, and participation in more token projects.

Meanwhile, some community users have begun discussing ways to bypass restrictions using VPNs or third-party installation packages, but local security experts warn that such practices will significantly increase the risk of account theft and asset loss.

As one of the world's most active cryptocurrency markets, Korea has over 10 million digital asset users. Official data shows that by mid-2025, Korea's crypto market total market cap will be approximately $64.6 billion, with daily trading volume remaining high. As regulations continue to tighten, Korea's crypto ecosystem is accelerating toward a “strict compliance, high threshold” direction, which will also have a profound impact on the global crypto platforms' Asian strategies.