Crypto.com Will Launch An Exchange Platform In South Korea By The End of April

The global digital asset exchange Crypto.com announced on Tuesday its plans to launch retail trading services in South Korea on April 29.

This event comes right after the company steps into the shoes of OK-BIT, a locally licensed crypto exchange that has announced its service closure.

Crypto.com acquired OK-BIT in 2022 and now intends to put all its know-how into practice by merging the company’s experience with the country’s investing habits.

User Will Have An App Exclusive For South Korean Investors

Eric Anziani, Crypto.com’s President and Chief Operating Officer, expressed immense enthusiasm about the launch. He highlighted the critical importance of the South Korean market to the company’s expansion and pointed out the keen interest of South Korean consumers in cryptocurrency.

The launch introduces the Crypto.com App, a platform tailored to meet the rigorous demands set by South Korean regulatory authorities. This service, designed exclusively for South Korean investors, will facilitate the trading of cryptocurrencies and non-fungible tokens.

However, it draws a line at institutional clients, adhering to the country’s prohibition against local institutions directly investing in cryptocurrencies.

South Korea’s regulatory framework also requires crypto exchanges to secure a banking partnership to offer fiat-to-crypto trading services. This measure aims to curb money laundering and prevent market manipulation. Exchanges lacking such partnerships, including the former OK-BIT, were restricted to offering crypto-to-crypto trading services.

Crypto.com is initially launching as a crypto-to-crypto exchange but is actively seeking to establish a banking partnership, as reported by the South Korean news agency News1.

South Korea Is Not Taking Easy On The Regulatory Scenario

The Financial Intelligence Unit (FIU) of South Korea has ramped up its regulatory framework, including the introduction of measures that could lead to the expulsion of crypto platforms considered “unsuitable,” a development reported on February 12.

Furthermore, the FIU is set to intensify its screening procedures within the cryptocurrency market, aiming to block the entry of exchanges that do not meet certain standards into the economy.

Adding to the regulatory landscape, in February, the Financial Services Commission (FSC) of South Korea put forward a proposed amendment. This amendment requires executives of new cryptocurrency firms to secure regulatory approval prior to taking up their positions.

Should this amendment indeed go through, it stipulates that newly appointed executives cannot start working until receiving formal approval from the FSC.

The Crypto Giant Binance Already Has A Troubled Presence In The Country

Binance recently made a strategic entry into the South Korean market by acquiring a majority stake in the local exchange Gopax last year, which had been facing liquidity issues linked to Genesis Global Capital.

Gopax ranks among South Korea’s top five exchanges that are in line with the country’s regulations, enabling it to offer fiat-to-crypto services.

However, South Korean regulators have delayed the approval of Gopax’s structural overhaul due to concerns over Binance’s ongoing legal challenges in the United States.

In an effort to address local compliance hurdles, Binance is reducing its stake in Gopax and relinquishing its position as the exchange’s largest shareholder. Last week, Binance CEO Richard Teng visited South Korea to meet with financial authorities, as reported by local news.

South Korea stands as a global hub for cryptocurrency trading, boasting a highly active market. The country’s five fully licensed exchanges — Upbit, Bithumb, Coinone, Korbit, and Gopax — have collectively processed nearly $3 billion in cryptocurrency transactions in the last 24 hours, data from CoinGecko shows.

Earlier this year, during a peak in Bitcoin prices, the volume of cryptocurrency trading in South Korea momentarily exceeded that of the country’s stock market.