South Korea Blocks 17 Overseas VASPs on Google Play for Non-Compliance
1min read South Korea's Financial Intelligence Unit (FIU) has taken a significant step in regulating the virtual asset market by implementing access restrictions on the google Play platform applications of 17 overseas virtual asset service providers (VASPs) that are not registered in the country. This action, which began on March 25, targets prominent exchanges such as KuCoin and MEXC, among others. As a result, users in South Korea will be unable to install these applications anew, and existing users will be barred from updating them.
The FIU's decision is grounded in the "Specific Financial Transactions Information Act," which mandates that unregistered overseas VASPs offering services to Korean users must fulfill a registration obligation. This includes providing a Korean-language website, holding events to attract Korean customers, or supporting Korean won payments. Failure to comply with these regulations can result in severe penalties, including up to 5 years in prison or a fine of up to 50 million Korean won. The FIU has also referred some unregistered service providers to investigative agencies and continues to take measures to prevent users from being harmed by information leaks or financial losses.
This regulatory action underscores South Korea's commitment to regulating the virtual asset market and ensuring compliance with its financial laws. By restricting access to unregistered VASPs, South Korea aims to protect its citizens from potential risks associated with unregulated virtual asset services. This development is part of a broader effort to enhance oversight and transparency in the virtual asset sector, reflecting the government's proactive approach to managing the evolving landscape of digital finance. The restrictions are expected to have a significant impact on the operations of the affected VASPs in South Korea, as they will need to comply with local regulations to regain access to the market. The move also serves as a reminder to other virtual asset service providers to adhere to regulatory requirements to avoid similar restrictions.
Ask Aime: What impact will Google's restrictions on unregistered VASPs have on the virtual asset market in South Korea?
