Crypto.com, a global top 10 cryptocurrency exchange, announced its official entry into the South Korean market with the launch of a customized application targeting the local market on the 29th. During a press conference held in Yeouido, Seoul, Crypto.com revealed the termination of its subsidiary OKBit’s services and its new start as Crypto.com Korea. The exchange plans to sequentially expand its business scope from C2C (crypto-to-crypto) trading to using commercial bank accounts for KRW (South Korean Won) market transactions, in close cooperation with regulatory authorities.
Eric Anziani, the president of Crypto.com, expressed his ambition to become the first global cryptocurrency exchange to operate in South Korea in compliance with local regulations. Alongside, Patrick Yoon, the president of Crypto.com Korea, mentioned that building trust and establishing a reputation as a safe trading intermediary are major challenges. While specifics about the timeline for supporting commercial bank accounts were not disclosed, he mentioned ongoing collaborations with major domestic banks.
Crypto.com had previously made a sideways entry into the Korean market by acquiring the local cryptocurrency exchange OKBit in 2022. The new app will offer crypto trading functionalities, intending to expand its influence in Korea. Based on its experience acting as a bridge between traditional currency and cryptocurrency in Singapore and several other countries, Crypto.com anticipates success in opening accounts through collaboration with commercial banks.
Entering the KRW market is a crucial task for Crypto.com, as currently, only five exchanges have been authorized by financial authorities in Korea. Crypto.com plans to extend its business scope in Korea by utilizing the VASP (Virtual Asset Service Provider) permission of OKBit, which expires in seven months. However, several challenges are anticipated in entering the KRW market. The Financial Services Commission has maintained a negative stance on the entry of foreign exchanges into the domestic market due to concerns over opaque governance structures, risks of money laundering, and illegal transfers. Nevertheless, Crypto.com has recently been in contact with financial authorities to receive conditions for obtaining a trading license for the KRW market and is actively recruiting personnel to strengthen its Anti-Money Laundering (AML) capabilities.
