Crypto.com, a global cryptocurrency exchange ranked among the top ten, has indefinitely postponed its market entry into South Korea. This decision was prompted by concerns raised during the Financial Supervisory Service’s (FSS) on-site inspection regarding anti-money laundering (AML) practices. Initially slated to launch the ‘Crypto.com Korea’ trading app on the 29th, the company announced the deferment following regulatory feedback.
The Financial Intelligence Unit (FIU) of the Financial Supervisory Service conducted a thorough examination of Crypto.com’s AML system, focusing particularly on issues related to its acquisition of the domestic coin market exchange, OKExBit. The inspection highlighted deficiencies in OKExBit’s operational results and AML capabilities, leading to a non-approval of Crypto.com’s plans to convert into a won-based exchange.
As a result, Crypto.com is compelled to reevaluate its entry strategy into the Korean market. The firm stated, “In response to the complex regulatory environment necessary for market entry in Korea, we intend to clearly communicate our policies, procedures, systems, and disciplines to the financial authorities.” Additionally, Crypto.com expressed its commitment to collaborating closely with regulatory bodies to foster responsible industry growth for Korean consumers.
The indefinite delay in entering the Korean market reflects broader challenges faced by global exchanges attempting to navigate Korea’s regulatory landscape. Other major global exchanges like Binance have encountered similar regulatory barriers. This situation indicates a strengthening of the regulatory environment surrounding the operation of cryptocurrency exchanges in Korea.
