Crypto.com has decided to postpone its planned launch in South Korea following reports of an ongoing investigation into potential money laundering activities, as disclosed by local news outlet Segye Ilbo on Monday.

According to the report, South Korea's Financial Intelligence Unit (FIU) initiated an "urgent on-site inspection" after discovering issues related to anti-money laundering (AML) data provided by the exchange. The inspection commenced immediately upon discovery of these concerns.

In response to the news, Crypto.com emphasized its commitment to upholding the highest standards of anti-money laundering practices within the industry. The exchange stated that it will utilize this delay to ensure that Korean regulators fully comprehend its comprehensive AML policies, procedures, systems, and controls, all of which have been reviewed and endorsed by major jurisdictions worldwide.

Originally slated for April 29, Crypto.com's launch in South Korea was intended to introduce a new app tailored for retail users in the country. Despite having received regulatory approvals from South Korean authorities in 2022, the exchange has opted to halt its rollout plans in light of the ongoing investigation.

Last week, The Block reported on Crypto.com's denial of encountering obstacles in its launch efforts. The exchange clarified that while the Korean market presents challenges for international exchanges, it remains dedicated to collaborating with regulators to responsibly advance the industry within the country.

Regarding its acquisition of OkBit, Crypto.com stated that it had not onboarded any new customers in Korea since the acquisition. OkBit, which had approximately 900 customers at the time of acquisition, has never faced allegations of AML violations. Post-acquisition, existing OkBit customers have been limited to withdrawal services only, demonstrating Crypto.com's commitment to compliance and regulatory adherence.