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Crypto.com Postpones South Korea Launch Following Money Laundering Investigation Reports
Crypto.com said it was postponing a planned launch in South Korea after local media Segyé Ilbo reported on Monday that the exchange was facing an “urgent on-site inspection” due to money laundering concerns.
The report said South Korea’s Financial Intelligence Unit (FIU) under the Financial Services Commission discovered “issues related to anti-money laundering data” submitted by the exchange and began an on-site inspection from of this day.
“Crypto.com maintains the highest anti-money laundering (AML) standards in the industry. We will postpone our launch and use this opportunity to ensure that Korean regulators understand our extensive policies, procedures, systems and controls, which have been reviewed and approved by major jurisdictions around the world,” the exchange said in a statement shared with CoinDesk.
The block reported Last week, Crypto.com denied hitting a roadblock during its planned launch.
“Korea is a difficult market for international exchanges to access, but we are committed to working with regulators to advance the industry in a way that is responsible for Koreans. Crypto.com has not onboarded any new clients in Korea since the acquisition of OkBit,” an exchange spokesperson said in the statement.
“OkBit maintained approximately 900 customers at the point of acquisition per Crypto.com, and OkBit has never been cited for AML violations. Since the acquisition, access for existing OkBit customers has been limited to withdrawals.