South Korea Cracks Down on Offshore Crypto Access with App Restrictions

South Korea has tightened its grip on cryptocurrency regulations, making it harder for local users to move between domestic and offshore markets. The restrictions began with unregistered exchanges Bybit, MEXC, and HTX losing access to the Google Play Store, limiting direct mobile distribution.

The shift also includes enhanced monitoring of transfers worth more than 10 million won ($7,000), which will be subject to increased scrutiny when sent overseas or to self-hosted wallets. This move may encourage trading volume to migrate away from non-compliant onshore exchanges but creates significant friction for withdrawing assets from the same platforms.

Users may turn to web access or other channels to bypass app restrictions, reducing their effectiveness in containing offshore activity. The regulations have narrowed offshore access, with at least 29 unregistered derivative platforms now covered by Google Play restrictions.