Crypto.com is set to introduce its digital asset trading services in South Korea by the end of this month, as announced on Tuesday. This move comes as part of Crypto.com’s acquisition of local exchange OK-BIT in 2022.
The forthcoming platform from Crypto.com will replace the operations of OK-BIT, which is gradually winding down its services. Eric Anziani, President and COO of Crypto.com, expressed excitement about entering the South Korean market, emphasizing its significance for the company’s growth and the keen interest of South Korean consumers in crypto.
The South Korean trading platform Crypto.com will adhere to strict regulations set by local authorities for crypto exchanges. Operating under the name Crypto.com App, the platform will enable South Korean retail investors to engage in cryptocurrency and non-fungible token (NFT) trading. However, institutional clients will not be served, as South Korean-based institutions are restricted from direct crypto investments.
Furthermore, South Korea mandates that local crypto exchanges establish banking partnerships to offer fiat-to-crypto trading services, aiming to mitigate risks related to money laundering and market manipulation. While Crypto.com’s initial services will focus on crypto-to-crypto exchange, the company aims to secure a local bank partnership to provide a comprehensive trading experience, according to South Korean news agency News1.
In a parallel development, Binance made its entry into the South Korean market last year by acquiring a majority stake in local exchange Gopax. However, regulatory concerns surrounding Binance’s legal issues in the U.S. have led to delays in approving structural changes to Gopax. Binance has been actively seeking to address compliance issues by reducing its shares in Gopax and engaging in discussions with financial regulators in South Korea.
South Korea boasts one of the world’s largest and most active cryptocurrency markets, with its five fully licensed exchanges—Upbit, Bithumb, Coinone, Korbit, and Gopax—processing nearly $3 billion worth of crypto transactions in the past 24 hours, according to CoinGecko data. During the peak of Bitcoin’s price surge earlier this year, South Korea’s crypto trade volume briefly surpassed that of its stock market.
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