Beginning on January 28, 2026, South Korea will implement new regulations that affect the availability of international crypto exchange and wallet applications on Google Play. These changes will require that any platform wishing to operate in the country must present validation from the Financial Intelligence Unit (FIU).
New Compliance Guidelines Implemented
As per Google’s latest update, developers must provide proof that they have received FIU registration for their virtual asset service provider (VASP) status directly through the developer console. This requirement signifies a substantial shift in how app distribution is managed, linking it to adherence to local laws.
The immediate effect for users in South Korea will be significant. Major foreign apps will become unavailable for new downloads or updates via the Google Play Store. While existing apps might continue to function for a limited time, they will not receive updates or security patches through official channels.
Domestic Platforms Gaining Ground
Reports indicate that over 20 local exchanges have achieved the necessary FIU registration. Notable names in the sector include platforms like Coinone and Korbit. This compliance leaves many international competitors unable to meet registration requirements, thereby losing their foothold on Google Play in South Korea.
The implications are immediate. Users who depend on overseas apps for trading or managing cryptocurrencies may face increased difficulty in performing everyday tasks. While web access remains an alternative, it does not offer the same user experience and could potentially compromise user security.
To gain approval from the FIU, foreign exchanges must meet a series of stringent regulations. These include establishing a local presence, implementing robust anti-money-laundering strategies, and securing certifications related to information security. These requirements can be both financially and administratively burdensome.
Market Trends and Shifts
Analysts predict that this regulation could channel more trading activity towards platforms registered in South Korea. However, there are concerns that users may resort to less secure methods—such as downloading APKs from unofficial sources or utilizing VPNs—which could expose them to potential security threats. This new compliance framework follows previous enforcement actions aimed at strengthening regulatory oversight.
Availability of apps will hinge on proper regulatory compliance. If a platform successfully shows FIU acceptance in Google’s console, it will remain in the Play Store and receive updates. Conversely, apps lacking this approval will be pruned from the platform.
Image courtesy of Unsplash, data visualization by TradingView
