Crypto.com, one of the leading global cryptocurrency trading platforms, has announced the acquisition of payment service provider ‘PnLink Co., Ltd.’ and virtual asset service provider ‘OK-BIT Co., Ltd.’. Consequently, Crypto.com has successfully obtained registration as a Virtual Asset Service Provider under the Electronic Financial Transaction Act in South Korea.
Why South Korea features Crypto.com’s expansion strategy
South Korea, the world’s tenth largest economy, is certainly a key win for Crypto.com. Even in the midst of a faltering global crypto market, its entry signifies a corporation that is unfazed. It has also stated that it will continue to engage with regulators. Particularly, it is focusing on bringing its products and services to countries where consumers have shown a strong interest and acceptance of digital currency.
Furthermore, the South Korean government’s acceptance of Crypto.com comes less than a month after the company received the go-ahead from other major markets. The approvals include registration in Italy from Italy’s Organismo Agenti e Mediatori (OAM), Cyprus’ Securities and Exchange Commission and approval in Greece from the Hellenic Capital Market Commission.
In addition, the Monetary Authority of Singapore has granted the company a temporary Major Payment Institution License, and the Dubai Virtual Assets Regulatory Authority has granted it a provisional approval for a Virtual Asset License.
As the cryptospehere continues to expand, it is becoming increasingly necessary for digital assets companies to get regulatory approvals. The global digital assets market has taken multiple hits, including nosediving cryptocurrency prices, multiple hacking incidents and bankruptcies. Users’ trust in digital assets may have been shaken as a result of these occurrences.
South Korea is home to LUNA founder, Do Kwon, and many South Koreans are keener following LUNA’s collapse in May. According to the Financial Services Commission, South Korea’s financial authority, an estimated 280,000 people had invested in Luna. Therefore, Crypto.com’s acquisition of regulatory approval in the nation is a key first step to winning investor confidence in the company.