Regulatory Roadblock for Crypto.com’s South Korea Launch
Crypto.com, a crypto exchange based in Singapore, has decided to postpone its launch in South Korea due to concerns raised by regulators about potential money laundering activities. The Financial Services Commission (FSC), which represents South Korean authorities, found anomalies in the data submitted by Crypto.com and initiated an “emergency on-site inspection” to closely monitor the exchange’s operations. According to an FSC official, there were concerns related to the prevention of money laundering activities in the materials submitted by Crypto.com.
The Financial Intelligence Unit (FIU), which operates under the South Korean FSC, conducted the emergency on-site inspection on April 23, just six days before Crypto.com’s planned launch in South Korea. Prior to this, Crypto.com had obtained a domestic virtual asset business license (VASP) in South Korea through the acquisition of a local crypto exchange called OKBit. The company decided to delay its launch and collaborate with regulators to address the concerns related to anti-money laundering measures.
A spokesperson for Crypto.com expressed their commitment to working with regulators to responsibly advance the industry in Korea. They emphasized the importance of ensuring that Korean regulators have a clear understanding of the company’s comprehensive policies, procedures, systems, and controls. The company sees Korea as a challenging market for international exchanges but is determined to navigate the regulatory landscape effectively.
In addition to the issues raised by regulators, South Korean financial authorities have announced plans to introduce new guidelines that would prohibit listing digital assets involved in hacking incidents on domestic exchanges. The authorities aim to thoroughly investigate the root causes of these incidents before allowing such assets to be listed. Foreign digital assets would be required to publish a white paper or technical manual specifically for the South Korean market prior to listing. Assets that have been listed on licensed exchanges for over two years may be exempt from these new criteria. Token issuers that fail to disclose essential information adequately could face delisting from exchanges.
These upcoming regulations have been in development since late 2023, with the Financial Supervisory Service seeking feedback from stakeholders such as the Digital Asset Exchange Association to formulate listing guidelines. The intention behind these guidelines is to ensure transparency and protection for investors in the South Korean market.
8 thoughts on “Regulatory Roadblock for Crypto.com’s South Korea Launch”
Leave a Reply
You must be logged in to post a comment.
It’s frustrating that regulators had to initiate an emergency inspection. It makes me question the integrity of Crypto.com.
Security and transparency are the building blocks of a successful crypto industry. I appreciate South Korean financial authorities’ efforts to introduce guidelines that promote these values. 💼🔒
Protecting investors should always be a top priority. I’m glad to see South Korean financial authorities taking steps to investigate hacking incidents and introduce guidelines that promote transparency and security in the market.
Balancing innovation and regulation is crucial for the long-term success of the crypto industry. The upcoming regulations in South Korea seem to be moving in the right direction.
I don’t understand why it has taken so long for these listing guidelines to be formulated. It’s disappointing that investor protection has not been a priority.
The involvement of stakeholders, like the Digital Asset Exchange Association, in the development of listing guidelines shows a collaborative effort towards transparency and protection in the South Korean market.
It’s reassuring to see that Crypto.com is committed to implementing effective anti-money laundering measures in South Korea. Working closely with regulators will help build trust in the crypto industry. 💪🙌
I hope Crypto.com truly collaborates with regulators and takes the necessary steps to address these concerns. They need to prioritize investor protection.