Crypto.com Postpones South Korea Launch After Reports of Money Laundering Probe

Crypto.com announced that they are delaying their planned launch in South Korea following reports by Segye Ilbo on March 1st, indicating that the cryptocurrency exchange is undergoing an immediate investigation regarding money laundering allegations.

The Financial Intelligence Unit of South Korea’s Financial Services Commission identified issues concerning anti-money laundering data provided by the exchange, prompting them to initiate an on-site investigation from that point forward.

“Crypto.com prioritizes strict Anti-money Laundering (AML) measures, exceeding industry norms. To clarify our comprehensive AML framework to Korean regulatory bodies, we’ve decided to delay our launch and utilize this time for detailed explanations of our rigorous policies, procedures, systems, and controls, which have been validated by regulatory authorities worldwide,” the exchange communicated to CoinDesk.

In the year 2022, the cryptocurrency trading platform obtained regulatory clearance from South Korea’s authorities. With this approval, they intended to debut a user-friendly application specifically designed for local retail consumers on the 29th of April.

Last week, The Block announced that Crypto.com had refuted rumors of encountering an obstacle during their upcoming product launch.

“Entering the Korean market for international exchanges is challenging, but we are determined to collaborate with regulators and promote the industry ethically for the benefit of Koreans. Since our acquisition of OkBit, Crypto.com has not added any new customers from Korea.”

At the time of Crypto.com’s takeover of OkBit, the company had around 900 customers. It’s important to note that there have been no reported violations of Anti-Money Laundering (AML) regulations involving OkBit prior to the acquisition. Following the acquisition, OkBit users have only been able to make withdrawals from their accounts.