South Korea Crypto Ban Blocks 17 Foreign Exchanges in Bold Move

Key Points

• South Korea Crypto Ban Blocks 17 Foreign Exchanges in Bold Move
• Big names like KuCoin, MEXC, and Poloniex were targeted
• Apps are now removed from Google Play for South Korean users
• Upbit’s market dominance grows as foreign rivals face bans

South Korea has once again flexed its regulatory muscle. On March 25, the country’s Financial Services Commission (FSC) directed Google to restrict access to 17 foreign crypto exchanges, including major players like KuCoin, MEXC, and Poloniex. These platforms have been removed from the Google Play Store in South Korea, making it impossible for users to install or update the apps.

Since March 25, at the request of the South Korean government, Google has implemented domestic access restrictions on 17 exchanges that are not registered in South Korea. Users cannot install new related applications or update them, including: KuCoin, MEXC, Phemex, XT, Biture,… pic.twitter.com/lEesTeYxSf

— Wu Blockchain (@WuBlockchain) March 26, 2025

The reason? These platforms failed to register with South Korea’s Financial Intelligence Unit (FIU), a legal requirement under the Specific Financial Transaction Information Reporting and Use Act. This law applies to any Virtual Asset Service Provider (VASP) operating in the country or targeting Korean users.

Violating this rule carries serious consequences, including hefty fines and even jail time. The FSC has been clear—this is about investor safety and preventing illegal financial activity, such as fraud and money laundering.

Exchange Blacklisted in South Korea. Source: South Korea’s FSC – Techtoken

The banned platforms include well-known names such as:

• KuCoin

• MEXC

• Phemex

• XT

• CoinEx

• DigiFinex

• Poloniex

• BitMart

• and others

Many of these exchanges offered Korean-language websites, marketed directly to local users, and supported Korean won transactions—further solidifying their status as non-compliant.

This move is not entirely new. South Korea has made similar enforcement efforts in recent years, banning 16 platforms in 2022 and another 6 in 2023. But this year’s blacklist of 17 exchanges is the most aggressive push yet, showing that the government is serious about creating a transparent and regulated crypto environment.

For those following global regulatory moves, this mirrors other major developments—like Binance’s wallet strategy that sparked a 24x trading volume surge, or the market maker controversy that triggered Binance’s internal crackdown.

BREAKING: Google has restricted access to 17 unregistered crypto exchanges in South Korea following a request from the South Korean government.

Apps like #KuCoin , #MEXC , and #Poloniex can no longer be installed or updated via the Play Store in the country.

👉 South Korea… pic.twitter.com/X5K55RGQ2X

— Crypto Patel (@CryptoPatel) March 26, 2025

Local Players Like Upbit Get a Big Boost

The crackdown is creating a ripple effect across South Korea’s crypto ecosystem—and local platforms are reaping the benefits.

Upbit, the country’s largest exchange, already dominates the domestic market. With foreign competitors now sidelined, its position becomes even stronger. Reports suggest that more than 30% of South Koreans are involved in crypto trading, and a majority of that volume runs through Upbit.

For new users, the removal of foreign apps from the Play Store leaves fewer choices, making Upbit the default option. For institutions, this could be a green light. A more regulated, government-backed market reduces legal risks and offers a cleaner path for TradFi (traditional finance) firms exploring crypto investments.

Some observers are even comparing this to the broader market trend where regulators are tightening rules globally while also aiming to protect innovation. For instance, in the U.S., the Ripple vs SEC lawsuit nears resolution, signaling a shift toward regulatory clarity that could benefit legitimate projects.

Back in South Korea, one crypto enthusiast commented on social media:

This isn’t just about enforcement. It’s about setting the stage for long-term market stability—one that can support both retail traders and institutional adoption.

South Korea isn’t playing when it comes to crypto regulations. This move puts a real hurdle in front of traders using these exchanges, but let’s be real crypto always finds a way. Curious to see how users adapt this time.

— Crypto_Rexy🧘‍♂️ (@Promirexy) March 26, 2025

A Step Toward Safer and Transparent Crypto Markets

South Korea’s latest move signals a broader trend: regulators worldwide are tightening controls to bring crypto out of its gray zone.

By blacklisting 17 non-compliant exchanges, South Korea is sending a strong message—not just to the platforms, but to the entire global market. Play by the rules or get blocked.

The FSC’s decision doesn’t just limit app access. It sets criteria for what constitutes illegal activity in the space, such as offering services in Korean, marketing to locals, and handling transactions in won without registration. This crackdown offers lessons for other countries on how to define and enforce crypto regulations.

It also opens the door for cleaner adoption pathways. A well-regulated environment is key to attracting larger investors. South Korea’s model could soon inspire similar action in other nations.

As South Korea balances strong enforcement with delayed crypto tax implementation, it’s creating an ecosystem that supports innovation while ensuring security. This is especially crucial amid rising concerns over market manipulation linked to political and financial figures—a reminder of the importance of strong oversight in this volatile industry.