Policy Overview and Impact
Google Play is set to enforce a new policy impacting overseas cryptocurrency exchanges operating in South Korea. Starting January 28, 2026, these exchanges and wallet apps must complete Virtual Asset Service Provider (VASP) registration with South Korea's Financial Intelligence Unit (FIU). The move aims to include anti-money laundering (AML) frameworks and Information Security Management System (ISMS) certification. Non-compliant apps will no longer be available for new downloads or updates on the Google Play platform.
This enforcement primarily affects major overseas exchanges such as Binance, OKX, and Bybit, which have not registered locally. Currently, only 27 domestic exchanges like Upbit, Bithumb, Korbit, Coinone, and Gopax have managed to comply with these requirements. The need for registration is part of the oversight by the South Korean FIU, which had already attempted to restrict overseas exchanges earlier in March 2025.
Exchanges Seek Resolution Amid Policy Challenge
Binance, a leading cryptocurrency exchange affected by this policy, is reportedly in talks with Google. A spokesperson for Binance stated that the company is "actively engaging with Google to seek a constructive resolution," and mentioned that the policy impacts many crypto platforms. The broader implications include restricted Android access for overseas exchanges due to the difficulties foreign firms face in meeting these requirements.
Despite limited official commentary from exchange CEOs or CTOs, community sentiment shares concerns over trading interruptions and the necessity for investors to find alternative access methods, such as browsers or local exchanges, to continue their trading activities.
Impacted Services and Previous Actions
While no specific cryptocurrencies have been identified as directly affected by the ban, the policy broadly targets all trading and wallet apps linked to unregistered international exchanges. This includes derivatives trading options, which are unavailable on local platforms. This shift is likely to increase the usage of local centralized exchanges (CEXs) or decentralized finance (DeFi) solutions.
In a similar measure in March 2025, South Korean authorities requested Google Play to block 17 unregistered foreign exchange apps. Users at the time resorted to browser-based trading as no full website blockages were enacted. This recent development aligns with Google's global policy updates requiring country-specific licensing, already applied in regions like the US, EU, and Japan.
Regulatory Support for New Measures
South Korea's tightening regulatory grip is supported by a statement from a government representative to MKr Korea, indicating the move from instructing telecom blocks to direct app distribution restriction as a formal policy. Officials highlight the ongoing struggles of domestic investors when using overseas platforms due to these restrictions.
Google's developer interface mandates proof of FIU report compliance, reinforcing the nation's strict control over the crypto space. Despite this, no comments have been issued from international entities like the SEC, CFTC, or ESMA on these changes, connecting these local efforts with broader international trends in regulatory enforcement.
The fast-evolving nature of South Korea's regulatory landscape shows a focused approach on app distribution control as a method to align with global compliance trends. Such progressive measures may encourage more stringent development on practices and standards in the cryptocurrency sector, affecting overseas entities looking to engage with the South Korean market.