Crypto.com, a cryptocurrency exchange from Singapore, has postponed its plans to enter South Korea due to worries raised by local authorities about possible money laundering.

The regulators in South Korea took action after examining Crypto.com's information and began an urgent inspection because of Anti-Money Laundering (AML) worries.

A spokesperson from the Financial Services Commission (FSC) informed the media about the regulatory worries, saying, “We discovered issues related to stopping money laundering activities in the documents submitted.”

The inspection by the Financial Intelligence Unit (FIU), under the FSC, started on April 23, a bit before the exchange was supposed to start operating in South Korea.

This active regulatory move shows the strict monitoring in South Korea’s financial sector, especially concerning AML rules.

Before these incidents, Crypto.com had gotten a virtual asset business license (VASP) in South Korea by buying a local cryptocurrency exchange, OKBit.

This was part of Crypto.com's attempt to enter the South Korean market, which is recognized for its tough rules for international exchanges.

In response to the regulatory involvement, a representative from Crypto.com announced the delay of their launch planned for April 29.

The company showed its dedication to following the rules and cooperating with South Korean regulators: “Korea is a challenging market for international exchanges, but we are determined to work with regulators to progress the industry responsibly for Koreans.”

They also highlighted that they will use the delay to ensure South Korean regulators understand Crypto.com’s AML measures well, saying, “We will delay our launch and use this time to confirm Korean regulators understand our detailed policies, procedures, systems, and controls.”

Furthermore, South Korean financial authorities are taking extra steps to boost market integrity by planning to put limits on listing digital assets linked with hacking incidents unless the causes are clearly explained.

New regulatory directions will also require all foreign digital assets seeking listing in South Korea to release a white paper or technical guide specifically for the local market.

Yet, tokens listed on a licensed exchange for over two years might not have to follow these new rules.

The Financial Supervisory Service has been active in shaping these directions since late 2023, collaborating with groups like the Digital Asset Exchange Association to make sure detailed regulatory frameworks that increase transparency and protect investors.

Token issuers who don’t reveal important details risk being removed from exchanges, showing the country’s dedication to strict regulatory monitoring.

Conclusion:

Crypto.com decided to delay its entry into South Korea due to concerns about money laundering. South Korean regulators are taking strong actions to ensure compliance and transparency in the cryptocurrency market.