New Regulation Impacts Cryptocurrency Market in South Korea
A new regulation in South Korea is set to directly impact the cryptocurrency market, as Google Play Store has decided to prohibit the listing and updating of overseas-based cryptocurrency exchanges and software wallets operating without registration. This measure, effective from January 28, will significantly alter South Korean Android users’ access to numerous global platforms.
Mandatory Registration for Google Play Listings
According to Google’s updated policy for cryptocurrency exchanges and wallet providers, applications must be registered as virtual asset service providers with the Korea Financial Intelligence Unit (FIU) to be listed in the South Korean store. Platforms that do not fulfill this requirement will have their applications unavailable for download or update in the country.
The application ban will come into effect on January 28. From this date, Android users will no longer have access to unregistered exchanges through Google Play. Among the platforms to be delisted are Binance, Bybit, and OKX, which are some of the exchanges with the highest trading volumes globally.
As of today, only 27 local cryptocurrency exchanges are registered with the FIU, with Upbit and Bithumb leading the market. For foreign exchanges, the registration process is regarded as extremely challenging due to local security standards and anti-money laundering certification requirements.
Potential Impact on Global Exchanges and Local Investors
The South Korean media views this decision as putting significant pressure on global cryptocurrency exchanges. According to News1, many individual investors in the country opt for foreign platforms for high leverage, arbitrage opportunities, and a broader range of cryptocurrency options, suggesting that the restriction could directly affect investor habits.
Local outlet Digital Asset reported that various circumvention methods, such as using VPNs or manually installing APK files, are already being discussed within crypto communities. However, such options pose serious security risks, with non-official installations exposing users to malware and asset losses.
Notably, the application restriction does not currently extend to web-based access. Investors can still reach the platforms via desktop and mobile browsers. Yet, the prospect of similar restrictions being applied to web access or Apple’s app store in the future remains under scrutiny within the sector.
With more than 10 million active cryptocurrency users and a market size exceeding 95 trillion South Korean won, South Korea continues to be one of the most dynamic markets globally.