Regulatory Hurdles Delay Crypto com’s Entry into South Korea Market

Crypto News- Singapore-based cryptocurrency exchange Crypto com has decided to delay its launch in South Korea following regulatory concerns.

Regulatory Hurdles Delay Crypto com’s Entry into South Korea Market

Authorities in South Korea flagged anomalies related to Anti-Money Laundering (AML) practices in the platform’s data, prompting an emergency on-site inspection to monitor the exchange’s operations. A representative from the Financial Services Commission (FSC) informed local media outlet Segye Ilbo, stating, We found concerns related to the prevention of money laundering activities in the submitted materials. The Financial Intelligence Unit (FIU), operating under the South Korean FSC, initiated the emergency inspection on April 23, just six days before the exchange was scheduled to launch in the region.

Crypto.com had previously secured a domestic virtual asset business license (VASP) in South Korea through the acquisition of a local crypto exchange named OKBit.

However, the company has since confirmed its decision to delay the planned launch scheduled for April 29. Instead, Crypto.com intends to collaborate with regulators to address concerns related to Anti-Money Laundering (AML) measures.

In a statement, a spokesperson for Crypto.com acknowledged the challenges of entering the South Korean market, stating, Korea is a difficult market for international exchanges to enter, but we are committed to working with regulators to advance the industry responsibly for Koreans.

The spokesperson further emphasized their commitment to compliance, stating, “We will postpone our launch and take this opportunity to ensure that Korean regulators understand our comprehensive policies, procedures, systems, and controls.

South Korean financial authorities are planning to introduce new guidelines that would prohibit the listing of digital assets involved in hacking incidents on domestic exchanges, unless the root cause is thoroughly determined.

Additionally, under the upcoming regulations, all foreign digital assets will be required to publish a white paper or technical manual specifically tailored for the South Korean market before being listed. However, tokens already listed on licensed exchanges for over two years may be exempt from these new requirements.