Crypto.com Set to Launch Crypto Trading App Amid Tightening Regulations in South Korea
Summary:
Crypto.com is set to launch its cryptocurrency trading app for retail investors in South Korea on April 29. Currently serving markets such as North America, Western Europe, the U.K., and Asia, the app will offer over 150 cryptocurrencies and NFTs. This development comes amid tightening regulations for crypto exchanges in South Korea. The country's Financial Intelligence Unit has plans for stricter control over exchanges, including the potential expulsion of unfit entities, while an amendment proposed by the Financial Services Commission could enforce regulatory approval for new cryptocurrency firm executives.
On April 29, Crypto.com, a centralized cryptocurrency exchange, will introduce its cryptocurrency trading app to retail investors in South Korea. The app, initially providing access to over 150 cryptocurrencies and non-fungible tokens (NFTs), is targeted at South Korean users – a crucial customer segment key to the company's progress. Eric Anziani, the exchange's president and CEO, revealed the plan in an announcement on April 2 and expressed the company’s willingness to work closely with South Korean regulators, who, he commended, are taking careful measures to develop the sector.
The new platform will inherit from the OK-BIT crypto exchange, which Crypto.com acquired in 2022, and which will halt its services on the day the new app is launched. The app is designed for retail investors only, as institutional investment in cryptocurrency has been prohibited in South Korea since 2017. Moreover, because the nation's finance regulators don't consider crypto as financial assets, institutional investments in crypto-related ETFs are also not allowed.
Crypto.com's entry into South Korea is a strategic part of its global expansion plans. The exchange, having established a significant presence in premium markets like North America, Western Europe, the U.K., and Asia, has been in efforts to strengthen its South Korean presence since 2022 when it achieved the Electronic Financial Transaction Act (EFTA) and Virtual Asset Services provider (VASP) registration in the country.
However, the move comes at a time of stricter regulatory environment for cryptocurrency exchanges and their executives in South Korea. The country's Financial Intelligence Unit (FIU) recently revealed intensified control over cryptocurrency exchanges, including the potential expulsion of ones considered unfit, as reported on Feb. 12. The FIU also plans to extend its screening procedures within the cryptocurrency market to block unfit exchanges from entering the economy.
Earlier in February, the Financial Services Commission (FSC) of South Korea proposed an amendment requiring new cryptocurrency firm executives to secure regulatory approval before assuming their posts. If the amendment passes, these executives would not be allowed to take office until the FSC officially approves their appointment.
Published At
4/2/2024 12:48:39 PM
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