Cryptocom, Postponed Its Launch in South Korea

Crypto.com has decided to postpone its launch in South Korea following a reported visit from local regulators. Originally slated for April 29th, the launch date is now on hold as the company aims to engage in further dialogue with regulatory authorities. The exact rescheduled launch date has not been announced.

In a statement to The Block, a spokesperson for Crypto.com expressed the company’s commitment to ensuring that Korean regulators fully understand their policies, procedures, systems, and controls. Recognizing South Korea as a challenging market for international exchanges to enter, Crypto.com emphasizes its dedication to collaborating with regulators to foster responsible industry advancement tailored to Korean users.

The postponement comes in the wake of a report by Segye Ilbo detailing a visit to Crypto.com’s local office by South Korea’s Financial Intelligence Unit. The visit was reportedly prompted by concerns raised over the company’s submitted documents related to anti-money laundering measures.

Crypto.com had previously announced plans to launch a local trading platform in South Korea, where it intended to fill the void left by the closure of OkBit, a domestically licensed crypto exchange. OkBit is scheduled to cease operations at the end of the month.

Addressing customer concerns, Crypto.com clarified that no new customers have been onboarded in Korea since the acquisition of OkBit. Access for existing customers has been limited to withdrawals only. Notably, OkBit had approximately 900 customers at the time of its acquisition and had not been cited for any AML violations.

Further details regarding the rescheduled launch date or confirmation of the FIU’s visit were not immediately provided by Crypto.com. Similarly, the FIU did not respond to inquiries from The Block.

South Korea maintains strict regulations on cryptocurrency exchanges, including restrictions on overseas exchanges soliciting services to local investors. This has prompted companies like Binance and Crypto.com to pursue local market entry strategies, often involving the acquisition of domestic exchanges.

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