Crypto.com, a well-known cryptocurrency trading platform, has delayed the launch of its retail services in South Korea, which was initially planned for April 29th.
Six days prior to the scheduled launch, the company made a strategic move based on the necessity of further engaging with local regulators for more thorough approval processes, as indicated in the report.
Regulatory Hurdles And Strategic Responses
The report points out that Crypto.com is given extra time to make adjustments. This pause enables Crypto.com to fine-tune its strategies and bring its business practices in line with South Korea’s laws, focusing significantly on anti-money laundering measures.
During this time, as per the company’s announcement, efforts will be made to improve the knowledge of Korean regulatory bodies regarding our exchange’s rules, technology, and safety measures aimed at creating a trustworthy and risk-free trading platform.
The company particularly noted:
International businesses find it challenging to penetrate the Korean market for exchanges, but we remain dedicated to collaborating with regulators to foster growth in a responsible manner. We will momentarily delay our entry and seize this time to ensure that Korean regulatory bodies are well-informed about our comprehensive policies, procedures, systems, and control mechanisms.
Based on Bloomberg’s report, quoting Segye Ilbo, South Korea’s Financial Intelligence Unit raised concerns during a visit to Crypto.com’s Seoul office about certain documents the exchange had provided.
An additional development is that Crypto.com purchased OkBIT and intended to merge their offerings under the Crypto.com name for their Korean market expansion. Yet, due to regulatory concerns, the rollout has been postponed indefinitely without specifying a new launch date.
A spokesperson told Bloomberg:
At present, Crypto.com hasn’t brought on any new Korean customers following the acquisition of OkBit. Prior to the deal, OkBit boasted approximately 900 users, but currently, they can only use the platform for making withdrawals.
South Korea’s Stance On Crypto: Surge In Consumer Interest
Amid growing excitement about cryptocurrencies in South Korea, there is a delay in events taking place. This country is pivotal in worldwide digital currency trading and boasts distinct market traits unlike other areas.
New information has emerged indicating that the South Korean cryptocurrency scene favors altcoins over well-known digital currencies such as Bitcoin and Ethereum. These altcoins tend to have greater price fluctuations.
In Q1 of 2024, the South Korean Won became the most frequently used currency for cryptocurrency transactions globally, outpacing the US dollar in trading volume according to the report.
The rise in interest for digital currencies in this area is evidently fueled by the exciting anticipation among investors. This trend has gained significant attention, even influencing recent parliamentary debates as reported by Bloomberg.
Politicians have tried to win over voters by proposing lenient tax regulations and fewer limitations on digital currency investments.
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2024-04-24 04:11