Crypto.com’s Korean launch delayed due to regulatory issues
Key Takeaways
- Crypto.com has delayed its launch in Korea due to regulatory concerns over its anti-money laundering practices following an urgent investigation by South Korean authorities.
- The exchange, which acquired a local cryptocurrency platform to secure its VASP license, is now working closely with regulators to clarify its AML measures.
- Korea is strengthening cryptocurrency regulations.
Due to regulatory issues related to anti-money laundering (AML) protocols. Crypto.com, Cryptocurrency exchange based in Singapore, have Advance into Korea was postponed.
This postponement was made after the Financial Services Commission of Korea (FSC). Inconsistencies were identified in the exchange’s AML documentation. An emergency inspection was conducted just a few days before the scheduled launch on April 29th.
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Crypto.com entered the Korean market through: We acquired the domestic exchange OKBit and were granted a Virtual Asset Business Permit (VASP). However, recent regulatory scrutiny has delayed its launch.
Commenting on the delay, a Crypto.com spokesperson said:
Although Korea is a difficult market for international exchanges, we are committed to working with regulators to develop the industry responsibly for Koreans. We are delaying our launch and will use this opportunity to ensure that Korean regulators understand our thorough policies, procedures, systems and controls.
This happens like this: Korea is strengthening overall cryptocurrency market regulation. For example, under the new law, foreign digital assets must submit a detailed white paper or technical manual designed for the Korean market before being listed.
As South Korea continues to improve its regulatory framework, exchanges like Crypto.com will need to adapt their operations to local requirements to enter this market.
Obtaining this license will be an important step for Crypto.com. global expansion strategy; This recently included receiving full operational approval in Dubai.
With a master’s degree in Economics, Politics, and Culture in East Asia, Aaron wrote a scientific thesis analyzing the differences between Western capitalism and collective capitalism after World War II.
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