South Korea’s Jan 28 Rule Could Block 17 Crypto Apps From Google Play
Starting January 28th Google Play is going to start enforcing stricter rules on virtual asset apps in South Korea...
Quick overview
- Starting January 28th, Google Play will enforce stricter rules for virtual asset apps in South Korea, requiring overseas crypto exchanges to register with the Financial Intelligence Unit (FIU).
- Non-compliance with these regulations will result in apps being removed from the Korean store, impacting updates and new versions for users.
- Korean traders may face difficulties managing open positions and transferring funds if their preferred overseas platforms are cut off from app distribution.
- These changes are part of South Korea's broader effort to unify crypto oversight and enhance regulatory compliance in a rapidly growing market.
Starting January 28th Google Play is going to start enforcing stricter rules on virtual asset apps in South Korea. Overseas crypto exchanges and wallet providers will have to go through the hassle of registering formally with the Financial Intelligence Unit (FIU) in order to keep their apps on the Korean store.
If they don’t comply with domestic financial regulations they’ll have their apps yanked from being listed, updated, or having new versions distributed to Korean users.
This policy change from Google actually lines up with South Korea’s Special Financial Information Act, so doing the proper registration with the FIU is now a must-have for any exchange that wants to get in front of local users.
The shift also means they’re moving from blocking websites at the telco level to actually blocking the apps – so you might still be able to get to some platforms in a browser, but trading, getting updates & security patches will be borked.
Compliance Frenzy for Global Exchanges
To get everything sorted out, the overseas exchanges are going to need to resubmit their virtual asset business reports – which isn’t going to be fun, and includes:
- Registering with the FIU as a virtual asset service provider (VASP)
- Making sure they’re AML compliant and doing customer due diligence properly
- Getting ISMS certification from the Korea Internet & Security Agency
The thing is all that takes a fair bit of time and effort, and they’ll have to do it all before the deadline.
Financial experts are warning that the big players like Binance and OKX might have a hard time getting all that sorted in time – last year the regulators called out 17 foreign exchanges for potential issues with the rules and wanted them taken off the app stores.
If these big exchanges don’t get a pass from Google, they won’t be able to get updates – which in turn means users are going to have security risks, outdated patches, and their functionality will start to get crippled.
Tough Times Ahead for Korean Traders
Korean crypto users are likely going to feel the pain right away. Their domestic exchanges aren’t allowed to do futures trading, so they’re probably going to be stuck with the overseas platforms for derivatives trading.
Which, if they get cut off from the app stores means:
- Managin open positions will be super tricky
- Moving funds around is going to be a pain
- There’s a higher risk of security issues due to all those outdated apps
Regulators are actually saying that blocking app distribution is a better way to stop people doing dodgy stuff than just blocking websites (which you can easily get around)
Meanwhile, they’re stepping up inspections at home – including shareholders and on site visits – so that’s going to put a lot more pressure on the industry.
Critics are saying though that this dual crackdown will limit consumer choice and make it super hard for foreign exchanges to compete.
Unified Crypto Oversight Coming
The new rules in South Korea are also part of a bigger picture of trying to get all crypto activity – both domestic and international – under a single set of rules. Whether this causes short term pain or not, its a sign that the government is serious about tightening things up in a market that is one of the most active in Asia.
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