Regulatory Hurdles Force Service to End PayProtocol AG announced that it would be terminating its virtual asset custody service for the Paycoin app in South Korea. The decision has been made as regulatory hurdles have always delayed a resumption of the payment services of Paycoin since February 2023.
Global Expansion Takes Center Stage
The company will not renew its VASP registration when the latter expires in April 2025. For its part, Paycoin intends to allocate resources to its expanding international payment ecosystem. In this respect, the move is consistent with the company’s approach of utilizing more crypto-friendly markets than others.
Crypto Tax Fears in South Korea
In July, for instance, South Korean officials debated a possible delay in the imposition of the 20% tax on crypto gains to 2028, citing market disruption and poor institutional readiness as possible causes. But that regulatory grey area has now promoted Paycoin to have second thoughts on its operations in the country.
International Ventures of Paycoin
Paycoin has recorded huge milestones as well internationally, such as the release of a global app to make PCI payments with major retailers like Apple, Shake Shack, and Swarovski. In fact, Paycoin made inroads into Lithuania with the grant of VASP status to facilitate further expansion into crypto-friendly jurisdictions.
Timeline of Withdrawal and Changes to Service
Paycoin announced that the users can withdraw their funds until April 21, 2025, for the PCI and other underlying assets. However, from September 27, 2024, it will no longer support depositing or creating a new wallet. Meanwhile, even though the wallet service is being entirely shut down on a domestic level, Paycoin still supports Wallet Connect and Paycoin Shopping for its users.
Conclusion
Paycoin’s decision to shut down the wallet services in South Korea was a tactical shift toward global markets due to its complicate regulatory environment. As the company grows its international presence, the shift may mark a crucial turning point in its operational strategy.
