A significant regulatory shift is set to redefine the cryptocurrency sector in South Korea. The Google Play Store has announced a new policy that will prohibit the listing and updating of overseas cryptocurrency exchanges and digital wallets that have not obtained proper registration. This policy, which will take effect on January 28, 2024, is expected to substantially limit South Korean Android users' access to a wide array of international crypto platforms.
Registration Requirements for Crypto Apps
According to Google's updated guidelines, cryptocurrency exchanges and wallet providers must be registered as virtual asset service providers with the Korea Financial Intelligence Unit (FIU) to be featured on the South Korean Google Play Store. Applications that do not meet these stringent criteria will be removed, rendering them inaccessible for download or updates within the country.
Once this prohibition is enacted, Android users in South Korea will no longer be able to download or update non-compliant exchanges. This will impact major global exchanges such as Binance, Bybit, and OKX, despite their substantial trading volumes worldwide.
Impact on Foreign Platforms and Users
The South Korean media views this regulatory development as a significant challenge for international cryptocurrency exchanges. Reports indicate that a considerable number of South Korean investors favor foreign platforms due to the availability of more generous leverage options and a broader selection of cryptocurrencies. Consequently, this new restriction could lead to considerable changes in trading behaviors.
Information from the Digital Asset platform suggests that the crypto community is exploring potential workarounds, such as the use of VPNs or manual APK file installations. However, these methods carry considerable security risks, including the potential exposure to malware and financial losses.
Currently, these restrictions are confined to app access, with web-based platform access remaining unaffected. Investors can still interact with their chosen exchanges through both desktop and mobile browsers. Nevertheless, speculation within the industry continues regarding the possibility of future web access restrictions and potential changes to Apple's App Store policies.
South Korea boasts a robust cryptocurrency market, with more than 10 million active users and a market valuation exceeding 95 trillion won. The nation continues to solidify its position as a global center for digital currency trading and innovation.
This directive presents global exchanges with a challenging scenario:
- •Registrations: Only 27 domestic exchanges, including Upbit and Bithumb, currently satisfy the FIU's standards.
- •Barriers: Foreign exchanges face formidable obstacles, including strict local security protocols and anti-money laundering requirements.
A spokesperson for Google Play stated,
“This policy aligns with our commitment to comply with local laws and ensure a safe user environment.”
These developments underscore the evolving regulatory environment and highlight the increasing importance of compliance within the cryptocurrency domain.