Google Play to block downloads and updates for unregistered overseas cryptocurrency exchanges and wallets in South Korea starting January 28, 2026. This policy shift targets apps lacking Virtual Asset Service Provider (VASP) registration with South Korea's Financial Intelligence Unit (FIU), aiming to curb illicit activities and bolster local compliance.​

Policy Details and Timeline

Google updated its Cryptocurrency Exchanges and Software Wallets policy back in August 2025, mandating proof of local registration via the developer console. Non-compliant apps, including major players like Binance, OKX, Bybit, and MEXC, will vanish from the Korean Play Store for new users. Existing installs might linger until security updates force removal, potentially locking out users over time.​ Developers must upload VASP credentials during app submission; failure triggers geo-blocks in South Korea. This echoes India's 2024 delistings of Binance and others following FIU notices, where apps stayed for old users but blocked newcomers.​

Impact on Users and Exchanges

South Korean traders, already navigating strict rules like real-name accounts and 20% capital gains tax, now face hurdles accessing global platforms. Sideloading APKs or web trading remains viable, but risks security gaps without auto-updates. Domestic giants Upbit and Bithumb stand to gain, dominating with compliant apps amid a market where overseas platforms captured significant volume via easy mobile access.​ Exchanges face tough choices: pursue costly VASP status (involving AML/ISMS compliance) or exit the lucrative Korean market. Foreign firms often balk at the infrastructure demands, mirroring global trends where local registration weeds out non-serious players.​

Broader Regulatory Context

South Korea's FIU has long targeted offshore exchanges for money laundering risks, with this Google partnership amplifying enforcement without outright website blocks. It fits a pattern: similar Play Store restrictions in India and policy tweaks worldwide since 2025. Globally, app stores act as gatekeepers, balancing innovation with consumer protection amid crypto's $3T boom.​ Critics worry it stifles competition, but proponents hail it as maturing the ecosystem. As 2026 unfolds, expect ripple effects: more countries eyeing app store leverage to enforce crypto rules.​