Crypto.com Hits Regulatory Milestone in Korea After Two Acquisitions

  • Crypto.com secured an Electronic Financial Transaction Act registration by acquiring PnLink, and a VASP registration from buying OK-BIT.
  • While it remains unknown if the exchange can offer its full suite of services in the country, the VASP registration allows it to provide crypto exchange and custody services.
Kris Marszalek, Co-Founder and CEO at Crypto.com

Kris Marszalek, Co-Founder and CEO of Crypto.com, during RISE 2018 conference, Hong Kong, June 2018. Seb Daly/RISE via Sportsfile

Popular crypto exchange Crypto.com has obtained two key registrations in South Korea through the acquisition of two local companies, the exchange said in a press release on 8 August.

According to the announcement, Crypto.com secured the Electronic Financial Transaction Act through the acquisition of payment service firm PnLink Co., and the Virtual Asset Service Provider (VASP) registration by purchasing OK-BIT Co, though the size of the deals were not disclosed. These licenses expand Crypto.com’s reach in the area, and will allow the crypto exchange to provide trading and financial services within South Korea. The co-founder and CEO of Crypto.com, Kris Marszalek, said in a statement:

“This is an exciting next step for Crypto.com in an important market. 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.”

Although the company did not mention whether it could now offer its full suite of crypto services in the country, the VASP registration will allow it to provide crypto exchange and custody services in South Korea. The Electronic Financial Transaction Act registration, on the other hand, keeps the company in compliance with the law when it comes to safety and reliability of electronic transactions.

Despite the current crypto market downturn — which has caused several crypto companies to file for bankruptcy — Crypto.com has made efforts to expands its services to new jurisdictions. The new acquisitions came shortly after Crypto.com received regulatory approval to operate in Italy, Greece, and Cyprus. The company has also received an in-principle approval from the Monetary Authority of Singapore, and a provisional VASP license in Dubai.

Discussion
Related Coverage
FTX Listed as Unauthorized Firm in U.K.
  • The Financial Conduct Authority has warned investors that crypto exchange FTX “may be providing financial services without authorization” in the U.K..
  • A spokesperson for FTX said the exchange believed it was impersonated by a scammer, as the phone numbers provided by the FCA were not connected to it.
September 19, 2022, 4:43 PM
Sam Bankman-Fried, co-founder and CEO of FTX

Sam Bankman-Fried, CEO of FTX, speaking at the Binance Blockchain Week, Singapore, 19 January, 2019. Binance

SBI’s Digital Asset Arm Receives License in Singapore
  • The Monetary Authority of Singapore has granted a Capital Markets Service license to SBI Digital Markets, the crypto subsidiary of financial giant SBI Holdings.
  • SBI DM now plans to launch a digital asset securities platform, as well as provide custody, capital markets products, and corporate finance advisory services in Singapore.
Arrest Warrant for Terra’s Do Kwon Issued by Seoul Court
  • South Korean authorities have issued an arrest warrant for Terra co-founder Do Kwon and five other individuals, alleging they had violated the Capital Markets Act.
  • The news quickly affected Terra’s re-launched LUNA token, which saw its price fall down by 28% in the past 24 hours.