Paycoin to end wallet services in South Korea

As a seasoned analyst with a decade of experience navigating the intricate world of financial markets, I find Paycoin’s decision to terminate its virtual asset custody service in South Korea a strategic move that reflects both the company’s resilience and the unpredictable nature of regulatory environments.


As a crypto investor, I recently learned that PayProtocol AG, the company behind Paycoin, intends to discontinue their virtual asset custody service for the Paycoin app in South Korea. This means they will no longer be providing safekeeping services for my Paycoins within this particular region.

This action arises due to difficulties encountered within our home country’s regulatory landscape, causing a halt in the resumption of PCI’s payment services since February 2023.

The company plans to let its Virtual Asset Service Provider registration lapse when it’s due for renewal in April 2025, choosing instead to concentrate on expanding its global payment network infrastructure.

As an analyst, I’ve been closely monitoring the discussions within South Korea regarding the proposed delay of the 20% cryptocurrency gains tax, initially slated for implementation in 2023. This potential delay, which might extend until 2028, arises from concerns voiced by the local crypto community and stemmed from apprehensions about market volatility and insufficient readiness among institutional entities to handle such a policy change.

Paycoin’s international ventures

paycoin has expanded its reach overseas, introducing a universal app for making PCI payments at various international outlets such as Apple, Shake Shack, and Swarovski.

Additionally, the firm set up operations in Lithuania and achieved Virtual Asset Service Provider (VASP) status, enabling them to grow in countries that are favorable towards cryptocurrencies.

Paycoin is moving away from registering as a Virtual Asset Service Provider (VASP) in South Korea, signaling a strategic shift towards global markets due to unclear regulations within the country that make operations challenging. Despite ending domestic wallet services, services like Wallet Connect and Paycoin Shopping will continue to be accessible, as stated in the recent announcement from Paycoin.

PCI withdrawals and asset withdrawals will continue until April 21, 2025. However, the creation of new wallets and deposit functionalities will conclude on September 27, 2024.

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2024-09-27 17:06