- Crypto.com has postponed its South Korea launch due to an on-site inspection prompted by money laundering concerns
- South Korea’s Financial Services Commission initiated the urgent inspection over apparent discrepancies in Crypto.com’s anti-money laundering data
- The exchange has decided to delay the launch until the probe is completed, although there is currently no suggestion of any wrongdoing.
Crypto.com has announced a postponement of its planned launch in South Korea following reports of an impending on-site inspection over money laundering concerns. Local news outlet Segye Ilbo highlighted the issue on Monday, stating that the Financial Intelligence Unit (FIU) under South Korea’s Financial Services Commission had initiated an urgent inspection due to apparent discrepancies in anti-money laundering data provided by the exchange. There is no suggestion yet of any wrongdoing, but the exchange has taken the decision to postpone the launch until the probe is completed.
29 April Launch Delayed
Crypto.com had initially planned to launch an app for retail users in the country on April 29, having obtained approval from South Korean regulators in 2022. Despite previous denials by the exchange of any obstacles to its launch, the postponement indicates a setback in its expansion plans.
The company denied just last week that it had hit a roadblock in its South Korean plans after local news outlet Bizwatch reported that the FIU had delayed approving the entity’s leadership transition from Crypto.com Co-founder Rafael Melo to President and COO Eric Anziani. This may not have had an impact, but suggestions of impropriety with regard to money laundering are, of course, far more serious.
Crypto.com Has “Highest AML Standards in the Industry”
In response to the news, Crypto.com emphasized in a statement that it “maintains the highest Anti-money Laundering (AML) standards in the industry,” adding, “We will postpone our launch and take this opportunity to make sure Korean regulators understand our thorough policies, procedures, systems, and controls, which have been reviewed and approved by major jurisdictions around the world.”
Crypto.com has not onboarded any new customers in South Korea since acquiring local exchange OkBit in 2022, which had approximately 900 existing customers at the time of acquisition and had never been cited for any AML infractions. Since the acquisition, access for existing OkBit customers has been limited to withdrawals.
