New Policy Impacting Foreign Platforms
Google Play will prohibit overseas cryptocurrency exchanges from the South Korean store starting January 28, 2026, unless these platforms complete VASP registration with the country's Financial Intelligence Unit.
This policy shift could impede foreign exchanges like Binance and OKX, boosting local platforms by curtailing international competition in South Korea's digital asset market.
Google Play is set to enforce a new policy from January 28, 2026, requiring foreign crypto exchanges to complete VASP registration in South Korea. This move aims to limit unregistered apps, impacting foreign firms significantly.
Key parties include Google Play, South Korea's Financial Intelligence Unit (FIU), and foreign exchanges such as Binance and OKX. Google will restrict access to apps not meeting these new requirements from its South Korean store.
Disruption and Market Adaptations
The policy change is expected to disrupt trading for Korean users on impacted exchanges like Binance. Users may face challenges in accessing app updates, dealing with security risks, and transferring assets efficiently. This decision bolsters the position of domestic crypto exchanges, encouraging a shift towards locally compliant centralized platforms. It integrates well with South Korea's focus on heightened regulatory standards in the crypto sector.
Potential outcomes include shifts towards decentralized finance (DeFi) as users search for alternatives to app-based trading. Historical precedents indicate that regulatory changes often lead to market adaptations and innovations within compliance frameworks.
Industry Response
Binance Spokesperson stated that they are "actively engaging with Google to seek a constructive resolution" while noting the policy affects multiple platforms.