Crypto.com is expanding in South Korea despite increasing regulatory scrutiny.
Centralized cryptocurrency exchange Crypto.com will launch a cryptocurrency trading app for South Korean retail investors on April 29.
The platform will first allow users in South Korea to access more than 150 cryptocurrencies and fiat tokens (NFTs) on the Crypto.com app, which is a huge market segment for the company's growth, wrote Eric Anziani, president and CEO of Crypto.com. In the April 2 announcement:
“South Korean regulators are moving the sector carefully and we look forward to continuing to work with them to help grow the industry responsibly.”
The new platform will take over from crypto exchange OK-Bit, which was acquired by Crypto.com in 2022. In the year OK-bit will discontinue its service on April 29, when the app was launched.
South Korean institutions Since they have been banned from investing in crypto since 2017, the new app only serves retail investors in the country.
Since the country's financial regulators have refused to accept crypto as a financial asset, institutions have been banned from investing in crypto-related exchange-traded funds.
Launched in South Korea, the crypto exchange is part of its global expansion efforts. Crypto.com has a strong presence in “tier one” jurisdictions such as North America, Western Europe, the United Kingdom and Asia.
The exchange is working to strengthen its presence in South Korea starting in 2022, when it approves the Electronic Financial Transactions Act and the registration of virtual asset service providers.
Related: Crypto.com president talks MCA, which will allow exchanges to expand across Europe
South Korea tightens regulatory crypto control.
The expansion comes despite tightening regulations for crypto exchanges and company executives in the country.
South Korea's Financial Intelligence Unit (FIU) has announced that it has strengthened regulatory measures for crypto exchanges in the country, including the possibility of expelling platforms deemed “inappropriate,” according to a February 12 report.
The FIU also aims to expand the scope of screening procedures in the crypto market and prevent inappropriate exchanges from entering the economy.
In February, South Korea's Financial Services Commission (FSC) proposed a new reform that would require new crypto company executives to obtain regulatory approval before assuming their role.
If the amendment is approved, new executives will not be able to work until the FSC formally approves their applications.
Related: Upbit's trading volume falls below $4B after hitting annual high in March
