🚨 South Korea’s Crypto Stall: Why Approval Takes Longer?

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So, South Korea decided they wanted to be the hot new kid on the crypto block. They started pushing for growth in their crypto services, but oh boy, did things slow down. It’s like trying to start a conversation with a wall. 🙄 Regulators are moving at snail’s pace, and fewer approvals mean traders and custody firms are left waiting around like they’re at a bad diner. Investors, startups, everyone’s watching closely. And let me tell you, they’re not impressed! 😒

South Korea: Approvals are Down in the Dumps

Fast forward to 2025: The Financial Intelligence Unit handed out only two new approvals for Virtual Asset Service Providers. The lucky ones? Happy Block and Blosafe. Talk about exclusivity! And just when you thought things couldn’t get slower, approval times soared from 11 months to about 16 months. Some unlucky souls have been twiddling their thumbs for over 600 days. Seriously, where’s the therapy for that?

Inspections And Penalties Are on the Rise

Look, regulators are practically on a witch hunt now. Dunamu, the big kahuna behind Upbit, just got slapped with a 35.2 billion won fine for some anti-money laundering mishap. And it’s not just them-Korbit, Bithumb, Coinone, and Gopax all got the stink eye lately. We’re talking suspicious transactions totaling an eye-popping 9.56 trillion won since 2021. Yikes! The regulators are just being extra cautious, folks. 🕵️‍♂️

Even the joint ventures and bank-linked projects like Bit Korea (the partnership with Hana Bank) are stuck waiting for the official thumbs-up. It’s like asking for a date and not getting asked back. So, a bunch of services are still in limbo, and regular folks are left wondering when they can try out more options.

Regulatory Changes And Legal Delays

Talking about legislative delays, there’s this big Digital Asset Basic Act everyone’s been waiting for. It’s supposed to set clear rules for stablecoins and all that jazz. But guess what? It’s now on the back burner until 2026. More questions, folks! Meanwhile, the paperwork’s thicker than the Oxford English Dictionary. ☹️

South Korea: Confusion Reigns in the Market

With so few new VASPs and the glacial pace of approvals, business folks are thinking about escaping to skinnier red tape regions. And don’t even get me started on the existing platforms-they’ve hit the brakes on new launches because they can’t keep up with the rules. This whole drama is pulling out the stops on competition, with potential new kids dropping out and shaking their heads.

Now, the industry bigwigs are saying, “Hey, stricter oversight means less crime and safer shopping for everyone.” Meanwhile, regulators want cheerful, safer market vibes. Both sides have their points. But with just two approvals this year and the law postponed until 2026, it’s anyone’s guess how things will unravel. Whether firms can adapt to the new, heavier compliance demands will tell us if there’s a light at the end of this tunnel. 🤞

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2026-01-07 11:30