Google Enforces Mandatory Registration Rule for Crypto Apps in South Korea

The Google Play Store has chosen to restrict the listing and updating of foreign-based cryptocurrency exchanges and software wallets that operate without registration, which will have a direct effect on the cryptocurrency industry in South Korea.

This policy would drastically change South Korean Android users' access to many international platforms starting on January 28.

Registration on Google Play is required.

Applications must be registered as virtual asset service providers with the Korea Financial Intelligence Unit (FIU) to be included in the South Korean store, under Google's revised policy for cryptocurrency exchanges and wallet providers. Applications from platforms that don't meet this standard won't be allowed to be downloaded or updated in the nation.

On January 28, the application prohibition will go into force. Android users will no longer be able to access unregistered exchanges via Google Play after this date. The delisting will include some of the exchanges with the largest trading volumes worldwide, such as Binance, Bybit, and OKX.

Upbit and Bithumb dominate the industry, with just 27 regional bitcoin exchanges now listed with the FIU. Local security regulations and anti-money laundering certification requirements pose significant challenges to the registration process for international exchanges.

Google Enforces Mandatory Registration Rule

According to the South Korean media, this ruling will put a lot of pressure on international cryptocurrency exchanges. Many individual investors in the nation choose international platforms for high leverage, arbitrage opportunities, and a wider variety of cryptocurrency options, according to News1, indicating that the limitation may have a direct impact on investor behavior.

According to local publication Digital Asset, there is already discussion among crypto communities about a number of circumvention techniques, including installing APK files manually and utilizing VPNs. Non-official installations, however, expose customers to viruses and asset losses, creating significant security dangers.

Interestingly, web-based access is not yet subject to the application limitation. The platforms are still accessible to investors through desktop and mobile browsers. However, there is still concern in the industry about the possibility of similar limitations being implemented in the future for web access or Apple's app store.

South Korea is one of the world's most active cryptocurrency markets, with over 10 million users and a market value of over 95 trillion South Korean won.