Cryptocurrency exchange Crypto.com has postponed its much-anticipated South Korean launch, citing the need for further discussions with local regulators. The decision comes after a period of review by Korean authorities, who reportedly raised concerns about Crypto.com's anti-money laundering (AML) protocols.
The exchange, initially scheduled to launch in South Korea on April 29, is now seeking to establish a clearer understanding with regulators regarding its compliance measures. "We will postpone our launch and take this opportunity to make sure Korean regulators understand our thorough policies, procedures, systems and controls," a Crypto.com spokesperson told The Block, a cryptocurrency news outlet.
South Korea has a reputation for being a demanding market for international cryptocurrency exchanges to navigate. Stringent regulations and a cautious approach from authorities have limited the number of foreign players able to establish a presence in the country. Crypto.com acknowledges these challenges but remains committed to entering the South Korean market responsibly. "Korea is a difficult market for international exchanges to enter, but we are committed to working with regulators to advance the industry responsibly for Koreans," the spokesperson added.
The postponement is a setback for Crypto.com's expansion plans in Asia. South Korea, with its tech-savvy population and growing interest in cryptocurrency, is considered a lucrative market for the exchange. Crypto.com has been actively expanding its global footprint in recent months, securing licenses and registrations in various jurisdictions.
The specific nature of the regulatory concerns surrounding Crypto.com's AML practices remains undisclosed. However, South Korea has a history of cracking down on cryptocurrency exchanges found to be non-compliant with AML and Know Your Customer (KYC) regulations. In 2020, several foreign exchanges were forced to exit the South Korean market after failing to meet regulatory requirements.
The delay is likely to disappoint South Korean cryptocurrency enthusiasts who were eagerly awaiting Crypto.com's launch. The exchange is known for its user-friendly platform, diverse range of cryptocurrencies, and various investment options. It remains to be seen how long the discussions with regulators will take and when Crypto.com will be able to secure the green light to operate in South Korea.