Paycoin to end wallet services in South Korea

Paycoin’s issuer, PayProtocol AG, announced that it plans to discontinue its virtual asset custody service for the Paycoin app in South Korea.

This decision is due to challenges in the local regulatory environment that have prevented the resumption of PCI’s payment services since February 2023.

The company has decided not to renew its Virtual Asset Service Provider registration, which expires in April 2025, choosing instead to focus on the growing international payment ecosystem.

In July, South Korean officials considered delaying the 20% crypto profits tax until 2028, amid concerns from the local crypto community. The delay has been mooted due to fears of market impact and inadequate institutional preparation.

Paycoin’s international initiatives

Paycoin has made major strides abroad, launching a global app that enables PCI payments at international retailers such as Apple, Shake Shack and Swarovski.

The company has also established a presence in Lithuania and secured VASP status to expand in crypto-friendly jurisdictions.

Paycoin’s decision to halt VASP registration reflects a shift in focus from South Korea to international markets as ongoing regulatory uncertainty in the country hinders operations. According to the Paycoin statement, while domestic wallet services will be discontinued, other features such as Wallet Connect and Paycoin Shopping will continue to be available.

Withdrawals for PCI and other assets will be supported until April 21, 2025, while new wallet creation and deposits will end on September 27, 2024.