- Crypto.com has hit a roadblock in one of its big launches.
- The exchange was forced to postpone the launch.
- The development comes amid a regulatory probe.
Digital assets exchange Crypto.com has reportedly postponed the launch of its trading app in South Korea following heightened scrutiny from regulators in the country.
The development comes after Crypto.com announced its expansion into the South Korean retail crypto market on April 2. The Singapore-based exchange planned to launch its trading app on April 29 to replace OK-BIT, a locally licensed crypto exchange it acquired in 2022.
Crypto.com’s Launch Hits a Snag
According to a Bloomberg report dated April 23, Crypto.com has postponed its official launch in South Korea to iron out issues with local regulators.
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“We will postpone our launch and take this opportunity to make sure Korean regulators understand our thorough policies, procedures, systems and controls.” The exchange said. “Korea is a difficult market for international exchanges to enter, but we are committed to working with regulators to advance the industry responsibly for Koreans.”
The postponement stems from South Korea’s Financial Intelligence Unit (FIU) visiting Crypto.com’s local office on Tuesday to conduct an “urgent on-site inspection” regarding money laundering activities at the exchange.
Speaking to local news outlet Segye Ilbo, an official from the FIU stated that the regulator had discovered “concerns regarding the prevention of money laundering” in Crypto.com’s data.
While the exchange has yet to set a new launch date, OK-BIT will cease its services on April 19. At the time of acquisition, OK-BIT had 900 customers and has limited its services to withdrawals since then.
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Read about South Korea’s plan to regulate crypto listing on exchanges:
South Korea Mulls Crypto Listing Guidelines Targeting CEXs
Stay updated on OKX’s woes in South Korea:
OKX Caught in South Korean Crypto Crackdown: Probe Underway?
