Prominent cryptocurrency exchange, Crypto.com recently announced that its entry into the South Korean market has been postponed. The firm’s decision follows heightened scrutiny from regulators in the country. South Korean regulators have reportedly been citing concerns over the exchange’s adherence to anti-money laundering [AML] regulations.
Crypto.com was initially eyeing South Korea’s bustling cryptocurrency landscape. Its robust investor engagement came as an added advantage. However, the exchange now faces an indefinite delay in its launch plans. According to the announcement, Crypto.com aims to further engage with regulatory authorities before proceeding. This highlights the intricacies of navigating South Korea’s stringent regulatory environment.
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Triggers for Delay
The catalyst behind this delay dates back to a visit from South Korea’s Financial Intelligence Unit [FIU] to Crypto.com’s local office. FIU reportedly flagged issues related to the exchange’s AML procedures further prompting a need for further examination.
The launch was originally scheduled for April 29 and was aimed to fill the void left by the closure of OkBit, a prominent local exchange. In light of the latest regulatory apprehensions, Crypto.com has further suspended new customer onboarding and has restricted existing customer access to withdrawals only.
A spokesperson, however, reignited hope and affirmed the firm’s dedication to complying with South Korean regulations. The exchange is currently stressing the importance of addressing any regulatory concerns promptly. The spokesperson said,
“We will postpone our launch and take this opportunity to make sure Korean regulators understand our thorough policies, procedures, systems, and controls. 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.”
With compliance as a top priority, Crypto.com remains steadfast in fostering responsible industry practices.
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