Singapore-based cryptocurrency exchange Crypto.com has postponed its planned launch in South Korea following concerns raised by regulators regarding money laundering anomalies in the platform’s data.
South Korean authorities identified Anti-Money Laundering (AML) issues in the data submitted by Crypto.com, prompting an “emergency on-site inspection” to monitor the exchange’s operations. A representative from the Financial Services Commission (FSC) informed local media Segye Ilbo about their findings, stating, “We found concerns related to the prevention of money laundering activities in the submitted materials.”
The Financial Intelligence Unit (FIU), operating under the South Korean FSC, initiated an emergency on-site inspection on April 23, just six days before Crypto.com’s scheduled launch in the region. Crypto.com had previously obtained a domestic virtual asset business license (VASP) in South Korea through the acquisition of local exchange OKBit.
In response to the regulatory concerns, Crypto.com confirmed the postponement of its launch scheduled for April 29. The company expressed its commitment to collaborating with regulators to address AML measures. A spokesperson from Crypto.com stated, “We will postpone our launch and take this opportunity to ensure Korean regulators understand our thorough policies, procedures, systems, and controls.”
South Korean financial authorities are planning to introduce new regulations that will impact digital asset listings on domestic exchanges. These regulations include requiring foreign digital assets to publish a white paper or technical manual for the South Korean market before listing, with exceptions for tokens listed on licensed exchanges for over two years. Token issuers failing to disclose essential information adequately may face delisting from exchanges.
Since late 2023, the Financial Supervisory Service has been developing listing guidelines, seeking input from stakeholders such as the Digital Asset Exchange Association. These guidelines aim to ensure transparency and security in the cryptocurrency market in South Korea.
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