Google Play will block unlicensed foreign crypto apps in South Korea, tightening VASP enforcement and boosting domestic exchanges like Upbit and Bithumb.
Summary
- Google now requires crypto exchanges and wallets to hold South Korean VASP registration to stay listed on the local Play Store, cutting off most foreign apps.
- Users can still access overseas platforms via web or APK sideloads, but bypassing Play Store checks raises security risks from malware and phishing.
- Domestic exchanges such as Upbit and Bithumb stand to gain market share, while some foreign firms may seek licensed Korean partners to retain presence.
Foreign cryptocurrency exchange applications are expected to become unavailable for download or unable to receive updates through South Korea’s Google Play Store, according to industry reports, as the platform enforces new licensing requirements tied to local regulations.
The policy change, implemented by Google, requires cryptocurrency exchanges and wallet providers to hold valid registration as Virtual Asset Service Providers (VASPs) in South Korea to remain available on the Play Store. Only platforms meeting the country’s regulatory standards, including anti-money laundering measures and security obligations mandated by Korean financial authorities, will continue operating on the platform.
Google and now requires crypto exchanges and wallets to host South Korean VASP
A limited number of overseas platforms have secured VASP status in South Korea, meaning most foreign exchanges will be blocked from new downloads and future app updates on the Play Store, according to regulatory filings. The policy effectively links Android app access to domestic licensing requirements, even if exchanges continue offering services in other jurisdictions.
South Korean users retain access to foreign exchanges through mobile web browsers or manual installation of applications using APK files. However, APK sideloading bypasses Google Play’s security checks, potentially exposing users to malware, phishing attacks, and compromised applications, according to cybersecurity experts.
The restriction may reshape South Korea’s cryptocurrency market structure by limiting competition from global platforms. Domestic exchanges such as Upbit and Bithumb could strengthen their market position as they remain accessible through official app stores, potentially gaining increased trading volume and influence over token listings and fee structures.
The policy change could drive some traders toward decentralized finance tools, as decentralized exchanges and non-custodial wallets are not subject to the same Google Play licensing requirements. South Korean authorities have continued tightening reporting requirements and enforcement across the cryptocurrency sector, creating regulatory uncertainty for users of decentralized platforms.
Some overseas exchanges may explore partnerships or equity stakes in Korean firms holding VASP licenses to maintain market presence, similar to Binance’s previous approach with Gopax. Compliant exchanges would still face restrictions on product offerings, as crypto derivatives remain prohibited under South Korean regulations, limiting available services even under licensed structures.
The policy represents a significant shift in how South Korean traders access international cryptocurrency trading platforms through mobile devices, according to market analysts.
Source: https://crypto.news/foreign-exchanges-face-google-play-lockout-under-south-koreas-vasp-rules/