South Korean Regulator Blocks Access to 17 Unreported Offshore VASP Apps on Google Play

South Korea's Financial Intelligence Unit (FIU) has taken decisive action to block domestic access to 17 unreported offshore Virtual Asset Service Provider (VASP) applications listed on Google Play. As of March 25, 2025, these apps are no longer available for download by South Korean users, and existing users are unable to receive updates. This move follows a request from the FIU to Google LLC.

The FIU‘s decision to restrict access is based on the Special Financial Transactions Information Act (SFTIA), which mandates that all VASPs operating within South Korea’s jurisdiction must be registered, even if the services are provided by foreign entities. This regulation aims to ensure that all virtual asset transactions are subject to proper oversight and anti-money laundering (AML) controls.

Why Were These Apps Blocked?

The blocked VASP apps include popular platforms such as KuCoin and MEXC. These platforms did not meet the legal requirements stipulated under the SFTIA, which enforces strict reporting obligations for both domestic and foreign entities operating in the virtual asset space. The key criteria for determining whether a foreign VASP falls under South Korean jurisdiction include:

1. Offering services through a Korean-language website.
2. Conducting marketing activities targeting South Korean users, such as promotions and customer acquisition events.
3. Supporting transactions in the Korean Won (KRW).

Apps that fail to meet these compliance standards are deemed illegal and are subsequently banned from operating within the country. The FIU emphasized that trading through such unregistered platforms exposes users to significant risks, including potential data breaches, loss of funds, and vulnerability to hacking due to the lack of regulatory oversight.

Risks of Using Unregistered VASP Apps

Engaging with unreported offshore VASP apps poses multiple dangers for users. Since these platforms are not subject to South Korean regulatory standards, they may lack robust security measures and customer protection frameworks. Users risk having their personal information compromised or falling victim to hacking incidents. Additionally, since these VASPs are not monitored for anti-money laundering practices, they can be exploited for illicit financial activities, placing users at risk of legal complications.

Another significant issue is the lack of financial protection, as unregistered VASPs are not obliged to separate client funds from the companys operating capital. In case of insolvency or fraudulent activities, users may find it nearly impossible to recover their assets. Therefore, the FIU strongly advises users to verify the registration status of any virtual asset platform they use by consulting the official FIU website.