Crypto News

Paycoin faces setback as South Korea suspends payments token

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Paycoin

PayProtocol, the developer of the payments-oriented cryptocurrency Paycoin, will be applying for a local license in order to continue operating after South Korea’s Financial Intelligence Unit (FIU) ordered the suspension of its business.

Paycoin, which was released by Danal Fintech Corp in 2019, has become one of the most popular payment tokens in South Korea, accepted by Pizza Hut, Burger King, 7-Eleven, and Park Seung Chol Hair-Studio, among others.

On January 6th, 2023, the FIU denied the registration of PayProtocol as a crypto trading platform, citing the lack of a banking partner, as required by South Korean laws.

PayProtocol had previously registered as a digital asset wallet provider, however, the FIU considered PayCoin transactions as an indirect exchange of crypto and fiat.

The company informed local media that the regulators requested a bank partnership five months after the application was submitted in May of last year and gave them only two months to secure a new deal.

The FIU ordered PayProtocol to cease its services and inform their users by February 5th, but the company requested an extension on the deadline which was not granted.

Following the FIU announcement, five licensed crypto exchanges in South Korea have declared PayCoin a cautionary investment.

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Roland is a Public Relations & Communications guru with an immense passion for the blockchain and crypto industry. A fusion of his expertise and passion led to the dawn of Optimisus in 2020.