Regulatory Compliance
Google Play has announced it will block unregistered overseas crypto exchange and wallet applications in South Korea. This move will affect apps that do not have the mandatory Virtual Asset Service Provider (VASP) registration with South Korea’s Financial Intelligence Unit (FIU).
This development is in line with South Korea’s growing efforts to bring more transparency and consumer protection into the digital asset space. The FIU mandates that all crypto businesses targeting South Korean users must register as VASPs. Failure to comply could result in their removal from app marketplaces like Google Play.
Google Supports Regulatory Compliance
Google Play’s decision reflects its commitment to supporting local regulations and user protection. According to local reports, the app store will begin identifying and restricting apps that provide virtual asset services without proper authorization in South Korea.
The VASP registration process is part of South Korea’s broader regulatory framework introduced through the revised Act on Reporting and Use of Certain Financial Transaction Information, which came into effect in 2021. Under this law, unregistered service providers are prohibited from operating or advertising in the Korean market.
Impact on Users and Developers
For South Korean users, this change aims to reduce the risks associated with using unregulated crypto platforms, such as fraud, money laundering, and data breaches. For developers and crypto companies, it signals a clear message: compliance is no longer optional.
Crypto exchanges and wallet providers targeting Korean users must now ensure their VASP registration is in order or risk being removed from major platforms. This also creates a more level playing field for local, regulated operators.