Crypto.com Calls South Korea an “Important Market,” Gets Regulatory Nod

Key Insights:

• Crypto.com has secured digital assets service provider license from South Korea.
• The crypto platform announced acquisitions of PnLink Co. and OK-BIT Co.
• South Korea is one of the most crypto-active countries, with users of around 5.58 million or 10% of the population.

Crypto.com has announced the completion of two key registrations in South Korea, a move it believes could recover the crypto market’s nosedive.

The cryptocurrency platform has secured the country’s Electronic Financial Transaction Act and Virtual Asset Service Provider (VASP) registration in what it calls an “important market.”

The Electronic Financial Transaction Act aims to ensure the safety and reliability of all e-financial transactions. It sets a high regulatory bar, and the approval reflects the nation’s stringent anti-money laundering rules.

Additionally, in December 2021, the Korea Financial Intelligence Unit (KFIU) made it mandatory for all VASPs to register their business to provide crypto services targeting Koreans.

Two Significant Acquisitions

The registration comes after Crypto.com, with the native token Cronos (CRO), announced securing two Korean-based firms – payment service provider ‘PnLink Co. Ltd.’ and virtual asset service provider ‘OK-BIT Co. Ltd.

The company noted the acquisition as “another key regulatory milestone,” following its recent in-principle approval from the Monetary Authority of Singapore and virtual asset license (provisional approval) from the Dubai Virtual Assets Regulatory Authority (VARA).

We're excited to share that we’ve achieve another key regulatory milestone:

EFTA + VASP registration in South Korea 🚀🇰🇷https://t.co/vCNztABJoG is committed to being the industry leader in regulatory compliance.

Full Details 👇https://t.co/5D9hVQIDAl pic.twitter.com/kWjy7XaK4r

— Crypto.com (@cryptocom) August 8, 2022

Announced during the Korea Blockchain Week 2022, which kickstarted Sunday in the capital city of Seoul, Eric Anziani, the COO of Crypto.com, discussed the company’s plans for South Korea after securing payment and crypto registrations.

I visited our Seoul’s office and met with some of the teammates who contributed to securing our payment and crypto services registrations in South Korea 🙌🏼

Very grateful for their hard work 🙏🏼, impressed by their humility and strong ambition for the market!

Onwards 가즈아 🚀! pic.twitter.com/MuYK76Aw4Z

— Eric Anziani (@ericnode) August 8, 2022

According to Kris Marszalek, co-founder, and CEO of Crypto.com, this is a critical move in an “important market” like South Korea, one of the most crypto-active countries in Asia.

“We are committed to working with regulators to continue to bring our products and services to market, particularly in countries like South Korea where consumers have shown strong interest and adoption of digital currencies.”

The company is also eyeing to further its Web3 ecosystem and advance blockchain technology, Patrick Yoon, general manager for the South Korean arm of Crypto.com, noted.

Furthermore, Anziani told Bloomberg that the company is working with partners in South Korea who are at the forefront of gaming and entertainment.

South Korea Recovers After Terra’s Blow

The algorithmic stablecoin Terra (LUNA) ecosystem’s rise and fall has taken a toll on the entire crypto space globally, particularly in South Korea, the birthplace of its creator – Do Kwon.

Kwon faced legal troubles in South Korea, following which the country’s ruling party announced the launch of a new Digital Asset Committee to oversee the crypto industry in the country.

The nation has thus joined jurisdictions worldwide in pushing for more crypto oversight following TerraUSD (UST) collapse.

Since then, South Korea has made efforts to ensure that investors in cryptos and stablecoins are better protected.

According to a study in March by the Financial Service Commission, South Korea’s crypto assets market has grown multifold – to 55.2 trillion won ($45.9 billion) as of end-2021, and the number of Korean users amounting to nearly 5.58 million or 10% of the population.

This is why crypto firms and service providers flock to South Korea, which has high crypto-friendly rules. Additionally, the country has postponed its plans to tax crypto earnings to 2025, making the environment more conducive to crypto players.