Paycoin to end wallet services in South Korea

PayProtocol AG, the issuer of Paycoin, announced plans to terminate its virtual asset custody service for the Paycoin app in South Korea.

This decision stems from challenges in the domestic regulatory environment, which have prevented PCI’s payment services from resuming since February 2023.

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

In July, South Korean authorities considered delaying the 20% crypto gains tax until 2028, following concerns from the local crypto community. The delay was discussed due to fears of market impact and insufficient institutional preparation.

Paycoin’s international ventures

Paycoin has made strides abroad, launching a global app that allows PCI payments at international retailers like Apple, Shake Shack, and Swarovski.

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

Paycoin’s decision to discontinue its VASP registration reflects a shift in focus from South Korea to international markets, as ongoing regulatory ambiguity in the country hinders operations. While domestic wallet services will cease, other features such as Wallet Connect and Paycoin Shopping will remain available, according to the Paycoin release.

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