South Korea Witnesses sudden elimination of 14 crypto-related applications by Apple, under an unexpected clampdown.
Let's dive into the latest crypto kerfuffle in South Korea! Apple's tin-opener was loose recently, purgeing 14 crypto apps off its South Korean App Store. Avoiding a Slipknot, even the global exchanges, KuCoin and MEXC, got booted. The Financial Intelligence Unit (FIU) had a bee in its bonnet, pinning these brawlers for peddling services without registering in the country, implicating them in under-the-radar business activities.
ICYMI, you should know that this isn't an apple-a-day-keeps-the-regulator-away scenario. Last month, Google Play also caught a cold and kicked the same two exchanges, along with 15 others, out of its garden. It seems the regulatory giants are flexing their muscles under the pressure to keep finances squeaky clean.
The head-scratching part? South Korea's rapprochement with crypto has been a slow dance, with Nearly 1 out of every 3 South Koreans having hopped on the crypto train. By late February, 16 million people had warmed up to the country's five largest local exchanges—Upbit, Bithumb, Coinone, Korbit, and Gopax [1].
This Coldplay-goes-tropical move is quite a surprise, considering a 2017 ban on crypto business-related activities still lingers. But in February 2022, the Financial Services Commission announced a 2025 pilot program that lets 3,500 businesses dip their toes in the crypto pool for financial and strategic purposes [2].
Still, it seems that South Korea won't compromise when it comes to unlicensed foreign operators. The FIU has raised the drawbridge and banned apps that refuse to play ball according to South Korean standards, which include proper registration and robust anti-money laundering safety nets [3].
For miscreants like these, the future ain't quite rosy. Non-compliance with the regulations can invite some serious heat. Penalties range from cozying up to Mr. Five Years in Jail and a $35k USD fine [1][2][3]. This is just another brick in the wall South Korea is building to ensure that all crypto platforms play by the rules.
In case you missed it:The Capitalist's Playground is chock-full of juicy crypto action these days. Banks have been wiggling their toes in the digital asset market, keeping an eye on regulatory changes and the maturing landscape [1].
- https://www.coindesk.com/business/2021/03/11/south-korea-financial-services-commission-issues-new-regulations-for-crypto-asset-exchanges/
- https://www.businesskorea.co.kr/news/articleView.html?idxno=84336
- https://www.fatf-gafi.org/media/fatf/documents/recommendations/Updated-Guidance-VASP-Regulation.pdf
- The Korean crypto industry is facing increased regulations, with the Financial Intelligence Unit (FIU) cracking down on unregistered foreign operators, including global exchanges like KuCoin and MEXC.
- Despite almost a third of South Koreans investing in cryptocurrency, the country has been tightening regulations, as witnessed by the removal of unregistered apps from the Apple App Store and Google Play Store.
- With South Korea's goal to keep finances clean, the strict regulations extend to crypto platforms, which must comply with proper registration and robust anti-money laundering safety nets or face penalties such as jail time and hefty fines.
- The broader finance industry is also showing interest in the cryptocurrency market, with banks watching regulatory changes and the maturing technology landscape closely.
