Crypto.com, a centralized cryptocurrency exchange, is set to launch its cryptocurrency trading app for South Korean retail investors on April 29. According to Eric Anziani, the president and CEO of Crypto.com, the app will initially provide access to over 150 cryptocurrencies and nonfungible tokens (NFTs), targeting the significant market segment of South Korean users. The launch of this new platform marks the transition from the previous crypto exchange, OK-Bit, which was acquired by Crypto.com in 2022. On the day of the app’s launch, April 29, OK-Bit will cease its services.
It is worth noting that the new app will exclusively cater to retail investors in South Korea, as institutional investors have been prohibited from investing in crypto since 2017. Furthermore, due to the country’s financial regulators not recognizing crypto as financial assets, institutions are also barred from investing in crypto-related exchange-traded funds.
This expansion into South Korea is part of Crypto.com’s global growth strategy. The exchange already has a strong presence in “tier one” jurisdictions, including North America, Western Europe, the United Kingdom, and Asia. Since 2022, Crypto.com has been actively working on strengthening its presence in South Korea, obtaining an Electronic Financial Transaction Act and virtual asset services provider registration in the country.
Despite the tightening regulations for crypto exchanges and company executives in South Korea, Crypto.com remains committed to its expansion plans. The country’s Financial Intelligence Unit (FIU) recently announced stricter regulatory measures for crypto exchanges, including the possibility of expelling platforms deemed “unsuitable.” The FIU also aims to enhance screening procedures in the crypto market to prevent unfit exchanges from entering the economy. Additionally, the Financial Services Commission (FSC) proposed a new amendment in February, which would require regulatory approval for new crypto firm executives before they can assume their roles.
These developments come at a time when Upbit, another prominent crypto exchange in South Korea, experienced a decline in trading volume after reaching a yearly high in March.