Crypto.com Faces Regulatory Issues with South Korea's Launch

Crypto.com has decided to delay the launch of its app in South Korea, citing regulatory concerns over the exchange's anti-money laundering practices as the primary reason. A report by local media outlet Segye Ilbo indicates that Korean financial authorities have commenced an urgent on-site inspection of the crypto exchange.

The inspection, led by the Financial Intelligence Unit under the Financial Services Commission, was prompted by concerns related to anti-money laundering practices found in the data submitted by Crypto.com.

While emphasizing its commitment to upholding rigorous anti-money laundering standards, Crypto.com asserts that it adheres to the “highest” standards. However, it has opted to postpone the launch of its new service to ensure that Korean regulators are thoroughly informed about its policies, procedures, systems, and controls.

Originally, the exchange had announced plans to roll out a local mobile application for coin trading next week, promising competitive pricing and support for various virtual asset transactions. Despite obtaining approvals to operate in South Korea in 2022, Crypto.com has encountered regulatory obstacles in the country.

Earlier this month, Crypto.com had announced its intention to introduce the new app in South Korea, characterizing it as a specialized trading platform tailored specifically for the Korean market. Eric Anziani, the Chief Operating Officer of Crypto.com, emphasized Korea's tech-savvy population and its penchant for innovation as pivotal factors guiding this decision.

Anziani elaborated on the upcoming launch, mentioning that the first product Crypto.com will introduce in Korea is the crypto.com app, which is their most popular product globally. He described it as a fully mobile product offering a convenient and safe way to buy, sell, and store digital assets, including non-fungible tokens, enabling Korean customers to access global prices in a regulated manner.

Furthermore, Crypto.com aims to support Korean creators and artists through potential partnerships, leveraging the country's influential status as a cultural hub. In ongoing discussions with local banks, Crypto.com is seeking to establish partnerships for account authentication, a regulatory prerequisite in Korea.

At present, the Korean cryptocurrency market comprises five won-based exchanges authorized by financial authorities. Crypto.com's entry into this market is poised to offer users an alternative trading platform, fostering competition and innovation within the local cryptocurrency sector.