Crypto.com exchange will make its cryptocurrency trading application available to retail investors in South Korea starting April 29 despite heightened crypto regulatory measures.
South Korean users will initially have access to over 150 cryptocurrencies and non-fungible tokens (NFTs) via the Crypto.com app. This market segment is crucial to the company’s expansion, according to an April 2 announcement by Crypto.com’s president and CEO, Eric Anziani:
“South Korean regulators are thoughtfully advancing the sector and we look forward to continuing to collaborate with them to help grow the industry responsibly.”
The forthcoming platform will succeed OK-BIT, a cryptocurrency exchange that Crypto.com acquired in 2022. The day following the app’s release, April 29, OK-BIT will terminate its operations.
Since 2017, South Korean institutions have been prohibited from investing in cryptocurrencies, and the new app will exclusively serve retail investors.
As a result of the nation’s financial regulators’ refusal to acknowledge cryptocurrencies as financial assets, institutional investments in exchange-traded funds (ETFs) related to cryptocurrencies are also prohibited.
The South Korean launch is an initiative of the cryptocurrency exchange to expand internationally. Crypto.com maintains a significant market share in “tier one” jurisdictions, including Asia, North America, Western Europe, and the United Kingdom.
Since 2022, when it obtained registration as a Virtual Asset Services provider (VASP), and under the Electronic Financial Transaction Act (EFTA), the exchange has been attempting to strengthen its presence in South Korea.
South Korea Strengthens Crypto Regulatory Supervision
The expansion has occurred despite stricter regulations for cryptocurrency exchanges and company executives in the country.
As reported on February 12, the Financial Intelligence Unit (FIU) of South Korea has escalated regulatory oversight for cryptocurrency exchanges within the nation. This includes the potential expulsion of platforms considered “unsuitable.”
Additionally, the FIU seeks to broaden the scope of crypto market screening procedures and prevent unsuitable exchanges from accessing the economy.
The Financial Services Commission (FSC) of South Korea introduced a novel amendment in early February, which would require regulatory sanction before the employment of newly appointed executives of cryptocurrency firms.
Should the amendment be approved, new executives can begin work once the FSC formally certifies their applications.
