South Korea Tightens Crypto Access as Google Play Blocks Unregistered Exchanges

Regulatory Framework - South Korea is tightening regulations on crypto platforms, using app stores as a means of enforcement to distinguish between compliant digital finance and unregistered crypto activities [1] - The National Assembly has passed amendments to the Capital Markets Act and the Electronic Securities Act, establishing a legal framework for tokenized securities across various financial products [2] - The Financial Services Commission will lead the implementation of these laws, which are set to take effect in January 2027 after a one-year preparation period [3] Tokenized Securities - The new framework defines security token offerings as securities under the Capital Markets Act, with issuance and distribution information recorded on a blockchain-based distributed ledger [2] - This regulatory framework is expected to enhance the use of smart contracts and facilitate distributed ledger-based securities and account management [3] Enforcement Measures - Google Play has introduced new restrictions for crypto apps in South Korea, requiring crypto exchanges and wallet providers to register as virtual asset service providers with the Financial Intelligence Unit to remain listed [4] - Starting January 28, 2024, Android users in South Korea will be unable to download or update apps from unregistered overseas exchanges, effectively blocking major global platforms like Binance and Bybit [5] - As of Q3 2025, Android users account for over 80% of the South Korean market, making these restrictions a significant enforcement tool [6]