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 have a South Korean VASP registration to remain listed on the local Play Store, shutting down most foreign apps.
- Users can still access foreign platforms via web or APK sideloads, but bypassing Play Store controls increases security risks of malware and phishing
- Domestic exchanges such as Upbit and Bithumb may gain market share, while some foreign companies may look for recognized Korean partners to maintain their presence.
According to industry reports, foreign cryptocurrency exchange applications are expected to become unavailable for download or receive updates through South Korea’s Google Play Store as the platform imposes new licensing requirements related to local regulations.
The policy change, implemented by Google, requires cryptocurrency exchanges and wallet providers to have valid registration as Virtual Asset Service Providers (VASPs) in South Korea to remain available on the Play Store. Only platforms that meet the country’s regulatory standards, including anti-money laundering measures and security obligations imposed by the Korean financial authorities, will continue to operate on the platform.
Google now needs crypto exchanges and wallets to host South Korean VASP
A limited number of foreign 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 documents. The policy effectively ties access to Android apps to domestic licensing requirements, even as exchanges continue to offer services in other jurisdictions.
South Korean users maintain access to foreign currency through mobile web browsers or manual installation of applications using APK files. However, according to cybersecurity experts, APK sideloading bypasses Google Play’s security controls, potentially exposing users to malware, phishing attacks and compromised applications.
The restriction could 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 greater trading volume and influence over token lists and fee structures.
The policy change could drive some traders toward decentralized financial instruments, as decentralized exchanges and non-custodial wallets are not subject to the same Google Play licensing requirements. South Korean authorities have continued to tighten reporting requirements and enforcement in the cryptocurrency sector, creating regulatory uncertainty for users of decentralized platforms.
Some foreign exchanges could explore partnerships or equity stakes in Korean companies with 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 banned under South Korean regulations, limiting the services available even under licensed structures.
According to market analysts, the policy represents a significant shift in the way South Korean traders access international cryptocurrency trading platforms via mobile devices.
