Apple apps of KuCoin, MEXC and 12 crypto exchanges blocked in South Korea

South Korea’s Financial Intelligence Unit (FIU) reportedly said it had asked Apple to block 14 apps of overseas undeclared virtual asset operators, including KuCoin and MEXC, whose apps have been blocked since April 11.

“Undeclared business practices will face criminal penalties,” the statement said, noting that the FIU has continued to target undeclared overseas operators, while also blocking access through internet websites. “In the future, we will consult with relevant agencies to continue blocking such apps and websites to prevent money laundering risks and user losses,” the FIU stressed.

Crypto exchanges KuCoin and MEXC are among the companies targeted by the regulator, with access to their apps blocked in the country since April 11.

A spokesperson for MEXC said its app is no longer available on the Apple App Store and Google Play Store.

"MEXC respects local regulatory requirements and is currently reviewing necessary measures to ensure compliance with relevant policies," a spokesperson said.

A KuCoin spokesperson said: "We are closely monitoring regulatory developments in all jurisdictions, including South Korea, and will fully cooperate with any regulatory requirements."

Foreign virtual asset business operators who wish to operate in South Korea need to report to the Financial Intelligence Unit (FIU) under the Specified Financial Transaction Information Reporting and Use Act, the statement said.

"Undeclared business activities are subject to criminal penalties, and the FIU has been targeting overseas virtual asset business operators who have failed to declare their domestic business activities (16 companies in 2022 and 6 companies in 2023), while also blocking domestic access through internet websites and mobile phone applications," the regulator said.

South Korea has been taking action to block cryptocurrency providers that operate illegally. Last month, South Korea asked Google to block access to 17 apps, while there were reports that the regulator planned to block some exchange websites.

“In the future, the FIU will consult with relevant agencies to continue blocking domestic access to overseas unreported virtual asset operators through mobile applications and internet websites to prevent money laundering risks and user losses,” the Financial Intelligence Unit said.