Crypto.com, one of the biggest cryptocurrency exchanges in the world, announces the launch of its business in South Korea, marking the first entry of a foreign crypto exchange into the Korean market, with plans to expand services to include won transactions amid regulatory challenges.
Eric Anziani, the CEO of Crypto.com, held a press conference at the FKI Tower in Yeouido, Seoul on Apr. 2. He announced that Crypto.com will launch its main app service on Apr. 29. This app will allow users to deposit Bitcoin and trade with over 150 cryptocurrencies and non-fungible tokens (NFTs).
In 2021, Crypto.com acquired OKBit, a S. Korean cryptocurrency exchange, and now plans to use its Virtual Asset Service Provider (VASP) license to launch its coin market trading service under the Crypto.com brand in S. Korea. This is the first time a foreign crypto exchange is conducting business in S. Korea.
Crypto.com is a cryptocurrency exchange that was established in Switzerland in 2016. It has now become the world’s 10th largest exchange, serving 80 million users globally. The cumulative trading volume on the exchange has reached $10 trillion. Crypto.com has partnerships with several Korean companies, including Samsung Electronics, Naver Line, and Studio Dragon.
The company is known for its close collaborations with famous sports clubs, such as the LA Lakers of the NBA and Paris Saint-Germain (PSG) of the French soccer league. The ‘Crypto.com Arena,’ which is the home stadium of the LA Lakers, is currently owned by the exchange.
While initially launching in Korea as an exchange that can only trade with cryptocurrencies, the company aims to become an exchange that can trade with Korean currency, the won, in the future. In order to do so, Crypto.com must obtain a license from the Financial Services Commission (FSC) to trade cryptocurrencies with legal tender, such as dollars and won, in S. Korea.
Patrick Yoon, the representative of Crypto.com Korea, stated that their primary goal is to gain recognition as a safe and convenient coin market exchange among Korean users. They have been preparing for one and a half years to become an exchange that can trade with legal tenders.
However, it is predicted that Crypto.com’s ambition to become an exchange that allows trading with legal tender may not be possible in the near future.
The FSC has a history of hindering the entry of foreign operators into the Korean virtual asset market, citing the obscure corporate structures of foreign exchanges and the accompanying risks of money laundering and illegal transfers as reasons for its negative stance on their entry into the domestic market.
