Tom Kushner Crypto exchanges in South Korea face potential app removal as Google Play introduces new compliance requirements demanding FIU registration approval, affecting major offshore platforms like Binance and OKX.
Google’s New Rule Threatens Crypto Exchanges in South Korea
A major shakeup is underway for crypto exchanges in South Korea as Google Play enforces a new rule linking app availability to local regulatory registration. Beginning January 28, crypto apps will need to present proof of approval from South Korea’s Financial Intelligence Unit to stay listed on the platform.
This update could lock out some of the world’s largest offshore exchanges from one of Asia’s most active crypto markets. The new rule effectively demands that every app offering exchange or wallet services in the country meet the full standards of a Virtual Asset Service Provider registration, a process known for its strict compliance requirements.
Offshore Exchanges Face New Barriers
The new policy raises the bar for crypto exchanges in South Korea, particularly for offshore players like Binance and OKX. Both companies have significant user bases in the country but face steep hurdles when it comes to obtaining official registration.
The registration process is no small task. It requires setting up a domestic legal entity, implementing advanced anti–money laundering systems, passing government inspections, and securing an Information Security Management System certification. For global exchanges, these steps involve both time and resources, and not all have met the standard yet.
Binance, which owns a minority stake in the local exchange Gopax, remains without an official local entity. OKX has faced scrutiny in the past for operating without formal authorization in the country. Under Google’s updated rule, any crypto app that lacks the required documentation will be barred from downloads within South Korea. Over time, this could mean users lose access altogether if their apps become delisted.
Binance and OKX Respond to the Growing Pressure
In response to Google’s tightening grip, Binance stated that it is fully aware of the policy change and is in discussions with Google to find a suitable resolution. The company noted that the rule is not exclusive to one platform but affects all crypto exchanges in South Korea offering similar services.
According to the statement, users who reinstall their apps, upgrade devices, or perform factory resets may experience temporary disruptions in re–downloading the Binance app once the new enforcement begins. Binance emphasized its commitment to maintaining compliance and delivering secure, reliable services worldwide despite these challenges.
OKX, another major global exchange potentially affected by the move, has yet to release a detailed comment. However, the company’s past compliance struggles in South Korea highlight the broader challenges faced by offshore operators in aligning with the nation’s rigorous regulatory landscape.
Google Aligns Global Crypto Policy with Local Laws
The change in South Korea is part of a broader international rollout by Google Play to harmonize crypto app availability with local financial regulations. This move builds upon an update made in August 2025, when Google revised its Cryptocurrency Exchanges and Software Wallets policy to mandate that developers meet licensing standards specific to each country.
In the United States, crypto app providers must register with the Financial Crimes Enforcement Network. In the European Union, they must qualify as licensed crypto asset service providers. Now, South Korea joins the list of jurisdictions where compliance documentation is a prerequisite for app listing.
For crypto exchanges in South Korea, the result is a tightening regulatory ecosystem where global platforms must either adapt or risk exclusion. Google’s alignment with these standards signals that tech giants are no longer treating crypto apps as a gray zone but as financial entities subject to full oversight.
A Contrasting Move Amid South Korea’s Tokenization Push
Interestingly, Google’s compliance-driven restrictions come at a time when South Korea is expanding its blockchain initiatives through a separate legislative channel. The country’s National Assembly has recently passed amendments to the Electronic Securities Act and the Capital Markets Act, formally recognizing tokenized securities.
These changes allow blockchain-based securities to be issued and traded under existing financial laws, reinforcing investor protection and transparency. The government’s tokenization framework aims to merge traditional finance with digital asset infrastructure, demonstrating that while crypto exchanges in South Korea face increasing oversight, the state remains open to blockchain innovation.
This duality reflects South Korea’s cautious yet progressive stance on digital finance. While authorities tighten the leash on unregistered exchanges, they are also paving the way for regulated blockchain applications within mainstream markets.
What Comes Next for Crypto Users and Developers
As the January 28 deadline approaches, crypto app developers are racing to provide the necessary documentation to Google Play. Failure to comply could result in app removal or restricted downloads, effectively cutting off many South Korean users from their preferred trading platforms.
For users, the implications are serious. Without access through official app stores, downloading or updating apps may become difficult or even risky through unofficial channels. The situation underscores the growing intersection between technology regulation and financial law in the digital asset industry.
For global exchanges, the message is clear: compliance is no longer optional. To operate in South Korea, companies must not only adapt to local frameworks but also navigate the shifting policies of major platforms like Google Play that increasingly dictate market accessibility.
Disclaimer: Parts of this article were generated with the assistance from AI tools and reviewed by our editorial team to ensure accuracy and adherence to our standards.
