South Korea is tightening its grip on unregistered crypto firms, with the Financial Services Commission (FSC) confirming the removal of 14 crypto exchange apps from Apple’s App Store. Big names like KuCoin and MEXC were among those blocked, following similar actions by Google Play in March.

The FSC's April 11 announcement revealed that these exchanges were operating without proper registration, violating the country’s virtual asset service provider (VASP) regulations. The Financial Intelligence Unit (FIU) emphasized that these enforcement actions aim to prevent money laundering and protect users from potential financial harm. Users can no longer download or update these apps, and the FSC has reiterated that such unregistered business activities carry severe criminal penalties—up to five years in prison and a ₩50 million ($35,200) fine.

This crackdown is part of a wider effort that began on March 26 when Google blocked 17 unregistered exchanges. The government continues to investigate unregistered platforms, aiming to fully block their online services and mobile apps.

According to Korean law, crypto firms involved in selling, brokering, or managing virtual assets must register with the FIU. Failing to do so leads to sanctions, including app bans and legal penalties.

This move comes amid surging interest in crypto across South Korea. As of March 31, over 16 million residents—more than 30% of the population—were active on crypto platforms. That number is expected to rise to 20 million by 2025. Notably, 20% of public officials disclosed owning crypto assets, with holdings totaling $9.8 million, spanning coins like Bitcoin, Ether, XRP, and Dogecoin.

The sweeping bans signal that South Korea is serious about enforcing its crypto regulations and protecting its fast-growing user base.