Due to regulatory worries, Crypto.com, a Singapore-based cryptocurrency exchange, has postponed its planned expansion into South Korea.
South Korean authorities have announced an emergency on-site inspection of Crypto.com due to suspected Anti-Money Laundering problems. The media was informed about regulatory concerns by a representative of the Financial Services Commission (FSC), who said that the information provided raised issues with preventing money laundering.
The Financial Intelligence Unit (FIU) of the South Korean Financial Services Commission (FSC) started inspecting the exchange a few days before its planned debut on April 23. This aggressive regulatory action highlights how closely the South Korean financial sector is supervised, especially with regard to AML procedures. Before these events, Crypto.com had acquired a local cryptocurrency exchange, OKBit, and was able to get a virtual asset business license (VASP) in South Korea.
This was part of the platform's strategy to enter the strict South Korean market with its strong cross-border transaction laws. A Crypto.com representative announced that their launch, initially scheduled for April 29, has been postponed due to regulatory intervention. The company recognized that entering the Korean market for foreign exchange was difficult, but it promised to collaborate with regulators to responsibly develop the industry for Koreans. The company also expressed its commitment to compliance and cooperation with South Korean regulators.
South Korean financial regulators want to stop listing digital assets related to hacking incidents until the causes are known to strengthen market integrity. All international digital assets wanting to be listed in South Korea must submit a white paper or technical manual for the local market, as per new regulatory requirements.
Tokens can be exempted from these new regulations if they have been listed on an authorized exchange for over two years.
