Crypto.com's entry into the South Korean cryptocurrency market has hit a snag as the local financial regulator postpones approving a transition in executive leadership for its local entity, according to a report from local media.

The global cryptocurrency exchange had announced plans to launch a local trading platform in South Korea on April 2, aiming to tap into one of the world's largest crypto markets. The launch, slated for April 29, is intended to replace the services of locally licensed crypto exchange OK-BIT, which is in the process of winding down. Crypto.com acquired OK-BIT in 2022.

However, the Financial Intelligence Unit (FIU) of South Korea has deferred approval for the leadership transition within the entity, from Crypto.com Co-founder Rafael Melo to President and COO Eric Anziani, as reported by local news outlet Bizwatch.

While both the FIU and Crypto.com have yet to respond to requests for further comments, it's reported that Foris DAX Korea Limited, the South Korean company acquired by Crypto.com, internally executed the leadership change on Jan. 25. This delay in approval could pose challenges for Crypto.com in meeting future compliance requirements set for crypto companies in South Korea.

According to local regulations, crypto companies are required to report changes in leadership within 30 days of the event. Given that Crypto.com likely filed the report in February, the delay in approval raises concerns about adherence to local standards.

Despite the regulatory hurdle, Crypto.com affirmed its commitment to proceed with the planned launch as scheduled and stated that it is actively engaging with regulators.

In a similar vein, Binance, the world’s largest crypto exchange, has faced its own difficulties in entering the South Korean market. Last year, Binance acquired a majority stake in local exchange Gopax, which encountered liquidity issues linked to Genesis Global Capital. Gopax is among South Korea’s five fully licensed exchanges authorized to offer fiat-to-crypto services.

However, South Korean authorities have postponed approving the transfer of ownership within Gopax, reportedly due to concerns over Binance's legal issues in the U.S. In an effort to address local compliance issues, Binance has proposed stepping down from its position as Gopax's largest shareholder. Reports indicate that Binance CEO Richard Teng visited South Korea in March to engage with financial regulators.