Crypto.com has postponed the planned launch of its app in
South Korea due to scrutiny by the regulators on the exchange’s anti-money laundering
practices. According to a local media publication Segye Ilbo, Korean financial
authorities have initiated an emergency on-site inspection of the crypto exchange.
Anti-Money Laundering Concerns
The inspection, conducted by the Financial
Intelligence Unit under the Financial Services Commission, followed the
discovery of anti-money laundering-related issues in the data submitted by
Crypto.com.
Crypto.com has emphasized its commitment to
maintaining proper anti-money laundering standards, according to a report by
Coindesk. The firm mentioned that it adheres to the “highest”
standards. However, it intends to postpone the launch of the new service to
ensure that Korean regulators are fully apprised of its policies, procedures,
systems, and controls.
The exchange had announced plans to launch a local
mobile application facilitating coin trading next week. According to the firm,
the service promises competitive pricing and support for various virtual asset
transactions. Crypto.com obtained approvals to operate in South
Korea in 2022. However, regulatory hurdles have proved challenging for
the crypto exchange.
Early this month, Crypto.com announced the decision to debut the new app in South Korea, describing it as a specialized trading platform specifically designed for the Korean market. Commenting about the launch, Eric Anziani, the Chief
Operating Officer of Crypto.com, highlighted Korea’s tech-savvy population and
its adoption of innovation as key factors driving this decision.
Anziani mentioned: “The first product we will be launching in Korea is the
crypto.com app, which is our most popular product globally. It’s 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.”
Navigating Korean Crypto Regulations
Moreover, the company aims to support Korean creators
and artists through potential partnerships, leveraging the country’s influence as a
cultural powerhouse. With ongoing discussions with local banks, Crypto.com plans to establish partnerships for account authentication, a regulatory requirement
in Korea.
Presently, the Korean cryptocurrency market has five
won-based exchanges authorized by financial authorities. By entering this
market, Crypto.com will offer users an alternative trading platform while
fostering competition and innovation in the local cryptocurrency sector.
This article was written by Jared Kirui at www.financemagnates.com.