Crypto: Crypto Exchanges Face Ban In South Korea As Google Play Updates Rules

Google will require proof of FIU registration acceptance for crypto apps, raising compliance hurdles for offshore exchanges serving South Korean users.

Google is rolling out updated crypto app requirements in South Korea, a move that may significantly restrict access to offshore crypto exchanges by tying app availability to local regulatory clearance.

According to South Korean media outlet News1, starting Jan. 28, crypto exchange and wallet apps listed on Google Play in South Korea must upload documentation proving that their Virtual Asset Service Provider (VASP) registration with the country's Financial Intelligence Unit (FIU) has been accepted.

Google reportedly clarified that developers listing crypto exchange and custodial wallet apps must upload proof of completed FIU registration acceptance through its developer console.

Apps that fail to meet the requirement may be blocked in South Korea, preventing new downloads and potentially disrupting access over time.

According to the News1 report, Google’s updated policy is expected to have a significant impact on major overseas crypto exchanges. The media outlet specifically cited crypto exchanges Binance and OKX as platforms that may be affected by the rollout.

While South Korea requires crypto exchanges servicing domestic users to register with the FIU, obtaining formal registration can be challenging for offshore companies.

The process typically involves establishing a local legal entity, implementing anti-money laundering (AML) systems, undergoing on-site inspections and obtaining Information Security Management System (ISMS) certification.

While Binance has a 10% stake in the local crypto exchange Gopax, it doesn’t have an official local entity in South Korea. OKX previously faced allegations of operating as an unregistered crypto exchange in the country.

A Binance spokesperson told Cointelegraph that they are aware of the new policy but highlighted that this was “not unique to Binance and impacts other crypto apps as well.”

Source: CoinTelegraph