South Korea is drawing a hard line in the digital sand, and Google Play is holding the gate. Starting January 28, the tech giant will block unregistered crypto exchanges from its South Korean storefront, requiring platforms to prove they've completed registration with the Financial Intelligence Unit as virtual asset service providers.
Major international players like Binance and OKX face immediate removal unless they obtain domestic corporate status and Information Security Management System certification—requirements that effectively bar foreign exchanges from operating in the market. The policy mandates that exchanges upload "Report Receipt Complete" documents during app registration, with Google clarifying that merely filing paperwork isn't enough; they must provide proof of actual FIU approval.
This enforcement closes a significant distribution channel for platforms that have continued serving Korean users without local authorization. While workarounds like web browser trading or APK sideloading exist, security experts note these aren't realistic alternatives for security-sensitive financial applications, especially since Android users account for over 80% of the South Korean market.
The crackdown follows a pattern of tightening regulations. In April 2025, the FIU blocked 14 unregistered foreign crypto apps on Apple's App Store, and Google had already restricted 17 platforms in March 2025. Noncompliant platforms now face penalties up to 50 million won in fines and prison terms of up to 5 years under the Special Financial Transaction Information Act.
While Google's move appears to be a policy update from the company itself—rather than a direct government order—regulators may seize the opportunity to push for broader restrictions, including blocking access through Apple's App Store and web browsers. The regulatory environment continues evolving as authorities implement the OECD's Crypto-Asset Reporting Framework for automatic cross-border tax information exchange beginning in 2027.
Meanwhile, South Korea has also advanced legislation creating legal frameworks for tokenized securities trading set to take effect in 2027, and corporate crypto investment restrictions dating to 2017 were lifted in January, allowing listed companies to allocate up to 5% of equity capital to top cryptocurrencies.
