Google Implements Domestic Access Restrictions on 17 Unregistered Cryptocurrency Exchanges in South Korea
Google has implemented domestic access restrictions on 17 cryptocurrency exchanges that are not registered in South Korea, following a request from the South Korean government. Since Tuesday, users in the country have been unable to install or update applications associated with these exchanges, including platforms such as Kucoin, MEXC, Phemex, and Poloniex.
According to the South Korean Financial Services Commission (FSC), these exchanges violate the Special Financial Transactions Act. The law mandates that all virtual asset operators conducting business in South Korea must be registered with the authorities.
Under Article 7 of the law, even exchanges offering services from abroad must comply with the registration requirements. Regulators use several criteria to determine whether foreign exchanges can legally operate in the country, including whether they provide services in South Korea, promote activities targeting local users, or support trades involving assets owned by South Korean users.
The Financial Intelligence Unit (FIU) stated that these cryptocurrency exchanges have been violating the law since 2022.
Reports indicate that over the past three years, South Korea’s Financial Intelligence Unit (FIU) has identified and flagged unregistered foreign exchanges. In 2022, the agency identified 16 such operators, followed by six more in 2023.
List of cryptocurrency exchanges with operational restrictions. Source: Financial Services Commission
Registered exchanges have been ordered not to engage in transactions with unregistered exchanges. Those operating without proper registration could face severe penalties, including up to five years in prison or fines of up to 50 million Korean Won (approximately $37,000).
The government’s request to Google to suspend the operation of trading platform applications aims to curb illegal activities. This includes money laundering, while also protecting domestic users from threats such as hacking, fraud, and data breaches.
The FIU is now collaborating with other regulatory bodies, including Apple Korea and the Korea Communications Standards Commission, to implement similar measures for apps available in the Apple App Store and websites related to cryptocurrencies.
The FIU’s website also features an updated list of registered virtual asset operators, which currently includes 28 exchanges that are authorized to operate in South Korea.
Crypto Projects Accuse South Korean Exchanges of High Listing Fees
Elsewhere, it has been reported that exchanges operating in the East Asian country are demanding “excessive” fees to list tokens on the country’s largest cryptocurrency platforms.
According to a report by Chinese blockchain journalist Colin Wu on March 20, at least two crypto projects reportedly paid significant sums to secure listings on major exchanges. One project allegedly spent $10 million to be listed on UPBIT, while another project paid $2 million to be listed on Bithumb.
Some projects claim that intermediary fees are part of the process. Wu’s report highlights that certain projects must allocate between 3% and 5% of their total token supply to ensure a listing on UPBIT.
However, not all projects face such fees. Of the seven projects contacted by Wu, three stated they did not pay any intermediary fees.
UPBIT has denied these claims, stating that its listing process is based on merits rather than monetary transactions. The exchange clarified that listing tokens does not incur any cost, nor do external parties facilitate the process.
In a public statement, the company urged those who made such claims to disclose the names of any companies allegedly involved in such payments.
“If a specific company or individual asks for an intermediary fee while claiming to guarantee a listing on UPBIT, please be informed that this is an illegal broker unrelated to UPBIT,” the exchange stated.
Similar allegations have been made against other major exchanges, including Binance and Coinbase. Both companies have faced accusations of charging direct listing fees, though they argue that any required payments are intended as security deposits to support project development.
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