South Korean Crypto Exchanges Face Potential Ban Following Google Play Policy Update

A wave of uncertainty has hit the South Korean cryptocurrency market as Google Play Store announced updated policies for financial services applications, potentially leading to the de-listing of numerous crypto exchanges. The policy update, aimed at ensuring user safety and regulatory compliance globally, places stringent requirements on apps facilitating speculative or high-risk financial products.

In South Korea, where the government already requires virtual asset service providers (VASPs) to register with the Financial Intelligence Unit (FIU) and secure real-name bank accounts, Google’s move adds a critical layer of platform compliance. Many smaller and offshore exchanges that may have circumvented local regulatory hurdles could find themselves unable to meet Google’s criteria, which require explicit authorization and full adherence to local financial laws as interpreted by the platform.

The major concern is that Google Play often restricts apps related to financial services in jurisdictions where legal clarity is lacking or where the services are deemed overly high-risk. For exchanges that fail to secure the required full banking partnerships or those relying on anonymous account systems, the inability to comply with the updated developer terms will result in their application being removed from the Android marketplace. Considering the high market share of Android devices in South Korea, this de-listing would effectively amount to a functional ban, severely limiting an exchange’s ability to operate and acquire new users. Analysts suggest this will accelerate consolidation, strengthening the position of the few highly compliant, major domestic exchanges.

Source: Crypto exchanges face ban in South Korea as Google Play updates rules