Prominent cryptocurrency exchange Crypto.com recently announced that its entry into the Korean market has been postponed. The company's decision follows increased scrutiny from domestic regulators.South Korean regulators have reportedly cited concerns about the exchange's anti-money laundering compliance. [AML] Rules.
Crypto.com initially focused on South Korea's vibrant crypto environment. Strong engagement with investors was an added advantage. However, the exchange is currently facing an indefinite delay in its launch plans. According to the announcement, Crypto.com aims to further engage with regulators before proceeding. This highlights the complexity of navigating South Korea's tough regulatory environment.
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Trigger delay
The delay can be traced back to a visit by South Korea's financial intelligence department. [FIU] Crypto.com local office. The FIU has reportedly flagged issues related to exchanges' AML procedures, further prompting the need for further investigation.
The launch was originally scheduled for April 29th and was intended to fill the void left by the closure of OkBit, a leading local exchange. In light of recent regulatory concerns, Crypto.com has further halted onboarding of new customers and limited access for existing customers to withdrawals only.
However, a spokesperson rekindled hope and confirmed the company's dedication to complying with Korean regulations. The exchange is currently emphasizing the importance of addressing regulatory concerns quickly. A spokesperson said:
“We are postponing our launch and using this opportunity to familiarize South Korean regulators with our thorough policies, procedures, systems and controls. South Korea is a difficult market for international exchanges to enter. It is a difficult market, but we are committed to working with regulators to move the industry forward responsibly for the benefit of Koreans.”
With compliance as our top priority, Crypto.com is steadfastly committed to promoting responsible industry practices.
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