Crypto.com plans to launch a digital asset trading service in South Korea by the end of this month, as announced Tuesday. The move comes as part of Crypto.com’s acquisition of local exchange OK-BIT in 2022.
Crypto.com’s future platform will replace the operations of OK-BIT, which is gradually reducing its services. Eric Anziani, Crypto.com’s President and COO, expressed his excitement about entering the Korean market, emphasizing its importance to the company’s growth and the interest of Korean consumers in cryptocurrency.
South Korean trading platform Crypto.com will adhere to the strict regulations set by local authorities for cryptocurrency exchanges. Operating under the name Crypto.com App, the platform allows Korean retail investors to participate in cryptocurrency and non-fungible token (NFT) trading. However, Korea-based institutions are restricted from direct investment in cryptocurrency, so the service is not available to institutional clients.
Additionally, South Korea requires local cryptocurrency exchanges to establish banking partnerships to provide fiat-to-fiat trading services to mitigate risks associated with money laundering and market manipulation. According to Korean news agency News1, Crypto.com’s initial service will focus on cryptocurrency-to-crypto exchanges, but the company is aiming to secure local banking partnerships to provide a comprehensive trading experience.
At the same time, Binance entered the Korean market by acquiring a majority stake in the domestic exchange Gopax last year. However, approval of structural changes to Gopax has been delayed due to regulatory issues surrounding Binance’s legal issues in the United States. Binance has been actively working to reduce its stake in Gopax and resolve compliance issues through discussions with Korean financial regulators.
According to CoinGecko data, South Korea is one of the largest and most active cryptocurrency markets in the world, with five fully licensed exchanges – Upbit, Bithumb, Coinone, Korbit, and Gopax – handling nearly $3 billion worth of cryptocurrency transactions in the past 24 hours. I am proud of it. . When the Bitcoin price surge peaked earlier this year, South Korea’s cryptocurrency trading volume briefly surpassed the stock market.
Featured Image: Freepik
Please see disclaimer