PayProtocol AG, the company behind Paycoin, has announced its decision to discontinue its virtual asset custody service for the Paycoin app in South Korea. This move comes as a result of challenges faced in the domestic regulatory environment, which have prevented PCI’s payment services from resuming since February 2023.
The company has revealed that it will not renew its Virtual Asset Service Provider registration, which is set to expire in April 2025. Instead, PayProtocol AG will shift its focus towards expanding its international payment ecosystem.
In a related development, South Korean authorities have been considering delaying the implementation of a 20% tax on crypto gains until 2028. This decision follows concerns raised by the local crypto community regarding the potential market impact and the lack of institutional readiness for such a tax.
On the international front, Paycoin has been making significant progress, launching a global app that enables PCI payments at various international retailers, including popular brands like Apple, Shake Shack, and Swarovski. The company has also established a presence in Lithuania and obtained VASP status to facilitate expansion into crypto-friendly jurisdictions.
The decision to terminate the VASP registration in South Korea indicates a strategic shift towards focusing on international markets, given the regulatory uncertainties in the country. While domestic wallet services will be discontinued, features such as Wallet Connect and Paycoin Shopping will remain accessible to users, as stated in the Paycoin announcement.
Users will have until April 21, 2025, to withdraw PCI and other assets from their wallets, while new wallet creation and deposits will be disabled starting September 27, 2024. This transition period aims to provide users with ample time to manage their assets accordingly.
Overall, PayProtocol AG’s decision to cease its virtual asset custody service in South Korea reflects a strategic realignment towards leveraging opportunities in international markets and adapting to evolving regulatory landscapes.