South Korea’s New Rules Could Cut Traders Off From Binance and OKX Crypto Apps

• South Korea will block non-compliant overseas crypto exchanges on Google Play from Jan. 28.
• Exchanges must secure FIU approval, making compliance difficult for offshore platforms.
• App removals and update bans could limit access for Korean crypto traders.

South Korea plans to restrict access to overseas crypto exchanges on Google Play starting January 28. The move could block new downloads and app updates for platforms like Binance and OKX.

Under the new rules, foreign crypto exchanges must both file a Virtual Asset Service Provider (VASP) report with the Financial Intelligence Unit (FIU) and receive official approval to stay listed on Google Play. Google says simply filing the report is not enough; exchanges must provide proof that the FIU has reviewed and accepted it.

Why Approval is Hard for Overseas Exchanges

To get FIU approval, a crypto exchange must set up a local company in South Korea, obtain ISMS security certification, and pass strict anti-money laundering checks. Industry sources say these requirements are very hard for overseas exchanges to meet.

As a result, even major global platforms are likely to be blocked on Google Play in South Korea when the rules take effect. Google confirmed that any non-compliant app will be blocked from January 28, preventing new downloads. 

Existing users may also be affected, since most trading apps need regular updates to keep working.

Impact on Korean crypto traders

The move could have a significant impact on local investors. Domestic exchanges such as Upbit and Bithumb dominate spot trading. However, they restrict crypto derivatives and futures. This has pushed many Korean traders to use overseas exchanges for advanced products.

If offshore platforms are removed from Google Play or prevented from updating their apps, access to these services could become increasingly limited for Korean users.

Related: South Korea Crypto Exchanges Oppose Proposed 20% Ownership Cap

Part of a Broader Global Policy

Google’s Korea-specific rules are part of a more comprehensive global effort to align crypto apps with local regulations. Similar requirements already exist in the U.S., EU, Japan, Canada, and Hong Kong, where exchanges must be registered or licensed with local regulators to list apps on Google Play.

In South Korea, only exchanges and software wallets that have fully filed and received approval for a VASP report from the FIU can remain listed. This sets a high bar that few, if any, overseas exchanges are expected to meet in the near term.

Related: South Korea Supreme Court Rules Crypto on Exchanges Can Be Seized