Crypto.com has decided to postpone the launch of its services in South Korea following reports of a money laundering investigation. The decision reflects the company’s commitment to complying with regulations and standards of compliance.

Let’s see all the details below. 

Crypto.com adopts precautionary measures in South Korea

As anticipated, Crypto.com has announced that it is delaying the planned launch in South Korea.

This comes after the local news agency Segye Ilbo reported that the cryptocurrency exchange was subject to an urgent on-site inspection due to money laundering issues.

The report indicates that the Financial Intelligence Unit (FIU) of South Korea, part of the Financial Services Commission, has identified “anti-money laundering data issues” provided by Crypto.com and has initiated an on-site inspection starting from that day.

Crypto.com has stated that it maintains the highest anti-money laundering (AML) standards in the industry. Therefore, it has decided to postpone the launch to ensure that Korean regulatory authorities understand their comprehensive policies, procedures, systems, and controls.

The company has also stated that its practices have been reviewed and approved by the main jurisdictions globally.

Crypto.com had obtained approval from South Korea’s regulatory authorities in 2022 and intended to launch an app for retail users in the country on April 29th. 

However, last week, The Block reported that Crypto.com had denied encountering any obstacles in its launch plan.

A spokesperson for Crypto.com stated that Korea is a challenging market for international exchanges, but the company is committed to working with regulatory authorities to develop the sector in a responsible manner. 

Crypto.com has not acquired new customers in Korea since acquiring OkBit, which had about 900 customers at the time of acquisition. 

Furthermore, it was emphasized that OkBit had never been cited for anti-money laundering violations and that, since the acquisition, existing OkBit customers’ access has been limited to withdrawals only.

Crypto.com enables on-chain SUI staking

Crypto.com has recently announced the launch of the on-chain staking feature for the SUI token. 

The announcement, shared through an official post on the Crypto.com website, outlines the details of this new option. Which offers users the opportunity to earn up to 4% in rewards while protecting the technology blockchain of the token.

The staking feature on Crypto.com allows users to earn rewards by putting their idle assets to work. The exchange also ensures the flexibility to unlock the assets at any time in a convenient and secure way. 

In the official post, Crypto.com lists various tokens from different blockchains that are now available for staking, including SUI, KAVA, MINA, SEI, KSM, TIA, CSPR, APT, NEAR, INJ, and others.

2024 has been a turbulent year so far for SUI, which has seen its value grow by 200% before reaching a peak of $2.18 in March. However, the token has since experienced a 60% drop. 

The recent integration with Crypto.com could help reverse this trend, offering new opportunities to users and increasing the value of the token.

Furthermore, SUI has collaborated with BytePlus, the technological subsidiary of the company behind TikTok US, to improve its analysis capabilities and content generation. 

This collaboration, announced at Sui Connect Dubai, can help SUI leverage BytePlus resources, including data warehouses, to improve its offering.

Crypto.com, with its strong position in the cryptocurrency market, could provide SUI with the support it needs to increase its value and strengthen its presence. 

In conclusion, with these new collaborations and functionalities, there is a growth potential for SUI and other tokens involved in staking on Crypto.com.