S.Korean Cryptocurrency Crackdown: 28th Triggers Major Market Shock

Korea is imposing stricter regulations on cryptocurrency. Starting from January 28th, any foreign exchange that wants to sell its funds in the app market must comply with very stringent legal requirements.

The Financial Intelligence Unit under the Financial Services Commission is responsible for monitoring digital asset platforms. The app will not exist anymore, at least not on Google Play, without official permission.

Some updates to Google Play’s “Virtual Asset (Cryptocurrency) Exchange and Software Wallet” policy. Google Play Galmuri.

Google’s policy change has a clear and strong message. The exchanges of cryptocurrencies and software wallets will have to obey the laws where they are if they wish to be listed. In Korea, that signifies being recognized as a virtual asset service provider.

Furthermore, it implies adherence to stringent anti-money laundering measures as well as ISMS accreditation from the Korea Internet & Security Agency. Such obstacles are not minor. They require a significant investment of time, money, and local facilities.

The consequences might be quite grave for the international titans. For example, traders in Korea greatly prefer the exchanges Binance and OKEx, particularly for futures and derivatives. Such products are prohibited on local platforms. Foreign applications took over and satisfied that demand. However, now that connection might break down.

Also Read: South Korea Takes Step to Open Crypto Market to Corporate Investors

Cryptocurrency Rules Reshape Korea’s App Market

After the announcement of Google, a significant question arose. Is it just enough to hand over all the documents or is it necessary for the FIU to accept the report formally? The reply seems to be very strict. Developers are required to provide proof that the whole reporting process has been completed.

Otherwise, new downloads will not be allowed. The ones that are already there will not be safe too. Financial applications need frequent updates. If there is no update, there is no trade.

In parallel, the Korean Government is tightening the noose around the necks of the companies in question. Inspections at the site are going on already. The major shareholding organizations are examined thoroughly.

Foreign companies that have no deep-rooted presence in the local market will most probably not be given the green light. The outcome is a silent but strong force pressurizing. Not a prohibition declared, but one effectively operating.

Cryptocurrency Access Faces Critical Test

The impact on investors could be instantaneous. A large number of Koreans depend on foreign platforms for sophisticated trading. To be cut off from the app is to be cut off from the tools, the liquidity and the choice. Even if an app is still on the phone, it might not be of use very long.

Korea is not the only one affected by such measures. Google has enforced the same restrictions in the US, EU, and Japan. Moreover, only those cryptocurrency businesses that are registered and approved will be allowed to remain visible.

Korea is not the only one affected by such measures. Google has enforced the same restrictions in the US, EU, and Japan. Moreover, only those cryptocurrency businesses that are registered and approved will be allowed to remain visible.

Also Read: South Korea Ends Nine-Year Ban, Opens Crypto Investing for Corporations