Crypto.com, a leading centralized cryptocurrency exchange, is poised to expand its reach by launching its cryptocurrency trading application in South Korea on April 29.
The move signifies a strategic expansion for the company, granting South Korean retail investors access to a diverse portfolio of over 150 cryptocurrencies and nonfungible tokens (NFTs) through the Crypto.com app.
Eric Anziani, the president and CEO of Crypto.com, emphasized the importance of the South Korean market in the company’s growth strategy.
In an announcement made on April 2, Anziani lauded the progressive stance of South Korean regulators towards the cryptocurrency sector and expressed enthusiasm for future collaborations aimed at fostering industry growth responsibly.
The transition to the new platform marks the end of services for crypto exchange OK-Bit, which Crypto.com acquired in 2022.
From April 29, OK-Bit will cease its operations, coinciding with the launch of Crypto.com’s app.
This move is tailored exclusively towards retail investors, reflecting the regulatory landscape in South Korea where institutions have been prohibited from investing in cryptocurrencies since 2017.
Furthermore, due to the non-recognition of cryptocurrencies as financial assets by the country’s financial regulators, institutions are also barred from engaging in crypto-related exchange-traded funds.
The launch is a crucial component of Crypto.com’s broader strategy to cement its presence in key global markets, including North America, Western Europe, the United Kingdom, and Asia.
The company has been laying the groundwork for its expansion in South Korea since at least 2022, securing necessary registrations under the Electronic Financial Transaction Act and as a virtual asset service provider.
However, this expansion occurs amidst increasing regulatory scrutiny in South Korea.
The Financial Intelligence Unit (FIU) of South Korea has announced stricter regulatory measures for crypto exchanges, including the potential expulsion of platforms considered unsuitable for the market.
These measures are part of a broader effort to enhance screening procedures in the crypto sector and to prevent the entry of unfit exchanges into the economy.
Additionally, a proposed amendment by South Korea’s Financial Services Commission (FSC) could further tighten controls, requiring new crypto firm executives to secure regulatory approval prior to assuming their roles, a move that underscores the evolving and increasingly regulated landscape of cryptocurrency trading in South Korea.
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