The Paycoin app’s virtual asset custody service will end in South Korea, according to a statement released by PayProtocol AG.
This decision is due to difficulties with the domestic regulatory framework, which have kept PCI’s payment services from reopening since February 2023.
The company has made the decision to concentrate on its expanding global payment ecosystem rather than renewing its Virtual Asset Service Provider registration when it expires in April 2025.
In response to worries expressed by the local cryptocurrency community, South Korean officials explored postponing the 20% tax on cryptocurrency gains until 2028 in July.
Concerns about the effect on the market and a lack of institutional readiness were mentioned as reasons for the delay.Â
Paycoin’s International Ventures
The company has made progress overseas, releasing an international app enabling PCI payments at multinational stores like Apple, Shake Shack, and Swarovski.
In order to expand into cryptocurrency-friendly jurisdictions, the company also established a presence in Lithuania and obtained VASP certification.
Due to persistent regulatory uncertainty in South Korea that impedes operations, Paycoin has decided to suspend its VASP registration.
This move represents a shift in focus from South Korea to overseas markets. The Paycoin statement states that although domestic wallet services will be discontinued, other features like Wallet Connect and Paycoin Shopping will still be accessible.
While new wallet creation and deposits will stop on September 27, 2024, withdrawals for PCI and other assets will be available until April 21, 2025.
