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 concerns 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 approval 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. Continuing talks 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.
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