Crypto News– According to an announcement made on Tuesday, global digital asset exchange Crypto.com is set to launch its retail trading services in South Korea on April 29. This move comes as Crypto.com steps in to fill the void left by the winding down of locally licensed crypto exchange OK-BIT, which was acquired by Crypto.com back in 2022.
Crypto com set to debut its platform in South Korea post acquisition of a local exchange
We are incredibly excited to be launching the Crypto.com App for retail users in South Korea — a market of tremendous importance to the growth of our business, and one in which consumers are very interested in crypto.
Eric Anziani
The new platform in Korea will adhere to the stringent regulations set by local authorities for crypto exchanges. Known as the Crypto.com App, the service will enable South Korean investors to engage in cryptocurrency NFT trading. However, it will not cater to institutional clients, as South Korean institutions are currently barred from direct crypto investments.
Additionally, South Korea requires local crypto exchanges to establish partnerships with banks to offer fiat-to-crypto trading services. This measure aims to mitigate the risks of money laundering and market manipulation. Exchanges lacking a bank partnership, such as OK-BIT, were limited to providing crypto-to-crypto trading services.
Crypto.com stated that its initial services will focus on crypto-to-crypto exchange. However, the company intends to pursue securing a local bank partnership to offer a comprehensive trading experience, as reported by South Korean news agency News1.
Binance Stalemate in South Korea
In the meantime, Binance made its foray into the South Korean market last year by acquiring a controlling interest in the local exchange Gopax. Gopax had been grappling with liquidity problems associated with Genesis Global Capital. Being one of South Korea’s five fully licensed exchanges, Gopax offers fiat-to-crypto services.
However, South Korean authorities have repeatedly delayed approving the structural changes to Gopax, allegedly due to concerns regarding Binance’s legal troubles in the United States.
In an effort to address local compliance issues, Binance has been working on reducing its stake in Gopax and relinquishing its position as the largest shareholder. Reports from local media indicate that Binance CEO Richard Teng visited South Korea last week to hold discussions with financial regulators.
Leave a comment