On April 11, 2025, Apple took a significant step by blocking access to 14 cryptocurrency apps, including popular exchanges operated by companies such as KuCoin and MEXC. This action follows a request made by South Korea’s Financial Services Commission (FSC), which claims that these exchanges were operating illegally within the country. This move has raised questions about the intersection of international regulation, digital finance, and corporate responsibility. Here’s a closer look at the events surrounding this decision, the regulatory context, and the implications for the global cryptocurrency market.
Apple’s Action in South Korea: What Happened?
Apple’s decision to remove the apps from its platform is the result of a formal request from the South Korean Financial Services Commission (FSC). According to the FSC, the 14 cryptocurrency exchanges operated by foreign entities such as KuCoin, MEXC, and 12 other firms were found to be operating in South Korea without proper registration. This registration is a legal requirement for all cryptocurrency operators who wish to conduct business in the country, and failure to comply with these regulations can result in serious consequences.
The South Korean government has been taking a firm stance on cryptocurrency regulation. Under local law, foreign crypto exchanges must report to the Financial Information Analysis Service (FIU) in advance if they wish to offer services to South Korean users. The authorities had already issued a similar request to Google earlier in March, asking the tech giant to block 17 crypto apps. The action against Apple, however, came later, with the restriction being enforced starting from April 11, 2025.
The FSC’s stance is clear: any unreported business activities related to virtual assets, including cryptocurrency exchanges, are considered illegal and subject to criminal penalties. South Korea’s regulatory framework is one of the strictest in the world, with violators facing imprisonment for up to five years.
Both Apple and Google complied with the requests from the regulatory bodies, with no indication that either company broke any laws in doing so. The key point is that both tech giants acted on a “request” rather than a direct “order,” signaling a cooperative approach to ensuring compliance with local laws.
What Undercode Says: A Deeper Look at the Situation
The South Korean
From an operational perspective, the ban on these cryptocurrency apps highlights a broader challenge that many foreign businesses face when trying to expand into regulated markets. In this case, the South Korean government is prioritizing transparency and accountability, requiring all foreign crypto exchanges to register with the Financial Information Analysis Service (FIU). This system is designed to monitor and regulate cryptocurrency transactions, ensuring they align with anti-money laundering (AML) and counter-terrorism financing (CTF) standards. The need for exchanges to comply with these regulations is crucial for maintaining the integrity of the financial system.
However, the situation also raises questions about the role of global corporations, such as Apple and Google, in shaping the future of cryptocurrency markets. While both companies complied with the regulatory request, they are not without their own responsibilities in terms of balancing the interests of the tech industry and regulatory demands. Apple and Google’s decision to block these apps demonstrates the fine line tech giants must walk between user demand, corporate interests, and compliance with global regulations.
Looking at the bigger picture, this action against cryptocurrency apps is part of a broader movement by governments worldwide to regulate digital currencies more effectively. With the rise of decentralized finance (DeFi) and the increasing popularity of cryptocurrencies, it’s no surprise that regulators are tightening their grip. The rise of crypto exchanges and the increasing use of digital currencies by the general public have made it necessary for governments to implement frameworks that protect both users and the integrity of the financial system.
The Korean example is an interesting case study because it shows how local regulatory bodies are not afraid to act decisively against foreign businesses that fail to comply with domestic laws. While international businesses like KuCoin and MEXC may view this as an inconvenience, the long-term impact could mean more countries adopting similar approaches to regulation, which could challenge the way global businesses operate in digital finance.
Fact Checker Results
- Accuracy of the Report: The report accurately reflects the situation with Apple and the South Korean government’s regulatory requests, without exaggeration or sensationalism.
- Legal Context: The legal context provided in the article about South Korea’s crypto regulations is correct, aligning with known government actions and requirements for cryptocurrency exchanges.
- International Impact: The article correctly highlights the broader implications of regulatory actions for international cryptocurrency exchanges and global tech companies.
References:
Reported By: 9to5mac.com
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