Crypto.com Delays South Korea Launch Due to Anti-Money Laundering Concerns
Summary:
Singapore-based cryptocurrency exchange, Crypto.com, has delayed its South Korea launch due to regulatory concerns over anti-money laundering discrepancies in the platform's data. The South Korean Financial Intelligence Unit initiated an emergency on-site inspection just six days before the scheduled launch. Crypto.com plans to collaborate with regulators to clarify its established anti-money laundering precautions. The company obtained a domestic virtual asset business license in South Korea after acquiring local crypto exchange, OKBit.
Crypto.com, a Singapore-based cryptocurrency exchange, has delayed its South Korea debut following regulatory concerns over money laundering discrepancies detected within the platform’s data. South Korean regulators discovered issues linked to Anti-Money Laundering (AML) in data provided by Crypto.com, leading to an emergency on-the-spot examination of the cryptocurrency exchange's activities. A spokesperson for the Financial Services Commission (FSC) spoke to local press, Segye Ilbo, revealing that there were concerns related to money laundering prevention measures in the submitted materials.
On April 23, the South Korean Financial Intelligence Unit (FIU), which is under the jurisdiction of the FSC, initiated an emergency on-the-spot inspection, just six days ahead of the exchange's anticipated launch in the area. Crypto.com previously secured a domestic virtual asset business license (VASP) in South Korea, following the acquisition of a local crypto exchange, OKBit. The company later confirmed plans to push back the upcoming launch, originally scheduled for April 29, and to collaborate with regulators to clarify the AML precautions that have been instituted.
"International exchanges find it challenging to penetrate the Korean market, but we are dedicated to working with regulators to responsibly promote the industry for Koreans," said a spokesperson from Crypto.com. “We will delay our launch and utilize this opportunity to ensure Korean regulators comprehend our comprehensive policies, procedures, systems, and controls," he added.
South Korean financial regulators have also planned to ban the listing of digital assets involved in hacking incidents on domestic exchanges until the root cause is fully established according to the forthcoming guidelines. The impending regulations will also mandate that all foreign digital assets should release a white paper or technical guide for the South Korean market before listing. Nonetheless, tokens listed on a licensed exchange for over two years may not need to meet these new requirements.
Token issuers who fail to properly disclose critical information may be subject to delisting from exchanges. Since late 2023, the Financial Supervisory Service has been developing listing guidelines by soliciting input from stakeholders including the Digital Asset Exchange Association.
Published At
4/23/2024 2:40:17 PM
Disclaimer: Algoine does not endorse any content or product on this page. Readers should conduct their own research before taking any actions related to the asset, company, or any information in this article and assume full responsibility for their decisions. This article should not be considered as investment advice. Our news is prepared with AI support.
Do you suspect this content may be misleading, incomplete, or inappropriate in any way, requiring modification or removal?
We appreciate your report.