Crypto News – Crypto.com Denies Regulatory Hurdles in South Korean Market Entry Amid Leadership Transition Concerns

Crypto News – Crypto.com Denies Regulatory Hurdles in South Korean Market Entry Amid Leadership Transition Concerns

Crypto News – Crypto.com has refuted claims made by a local media outlet suggesting that the company might be encountering obstacles in its efforts to penetrate the South Korean cryptocurrency market. The report implied that the local financial regulator could be delaying approval for a transition in executive leadership within a local entity.

On April 2, the global cryptocurrency exchange had announced its intention to launch a local trading platform in South Korea, a country renowned for hosting one of the world’s largest cryptocurrency markets. This move aimed to fill the void left by the winding down of services by locally licensed crypto exchange OK-BIT, which Crypto.com had acquired in 2022.

According to a report by local news outlet Bizwatch, citing industry sources, the Financial Intelligence Unit of South Korea delayed granting approval for the transition in leadership within the entity, from Crypto.com Co-founder Rafael Melo to President and COO Eric Anziani.

However, a spokesperson from Crypto.com dismissed these claims, stating, “We are working to update some of our directors of our local entity, as a procedural formality, and this has no impact on our ability to launch our app in South Korea on 29th April.”

Foris DAX Korea Limited, the South Korean company acquired by Crypto.com, internally executed the leadership change on January 25, as per the local media report. It is presumed that Crypto.com submitted the required report to the FIU in February, as the regulator mandates crypto companies to report such changes within 30 days from the event date.

The operating license obtained through the acquisition of OK-BIT is set to expire in November, requiring Crypto.com to renew it. Moreover, since OK-BIT did not meet the criteria for launching a fiat-to-crypto platform, Crypto.com must adhere to stricter local compliance requirements to operate fully within the country.

Binance, the world’s largest crypto exchange, has also faced challenges in entering the South Korean market. Last year, Binance acquired a majority stake in local exchange Gopax, which encountered liquidity issues associated with Genesis Global Capital. Gopax is among South Korea’s five fully licensed exchanges, allowing it to offer fiat-to-crypto services.

South Korean authorities have repeatedly postponed approving the transfer of ownership within Gopax, reportedly due to concerns regarding Binance’s legal issues in the U.S.

In efforts to address local compliance concerns, Binance has planned to reduce its ownership stake in Gopax. In March, Binance CEO Richard Teng visited South Korea and engaged with financial regulators, as reported by local media outlets.