South Korea’s authorities are investigating OKX, a major global cryptocurrency exchange, for allegedly operating without proper registration in the country. This inquiry is part of a larger crackdown on unregistered digital asset providers in South Korea. Here’s what happened in the biggest crypto hub today.
OKX Under Scrutiny for Targeting Korean Investors
The third-largest crypto exchange OKX is under scrutiny for allegedly promoting its services, like the ‘OKX Jumpstart’ platform, to Korean investors through Telegram influencers, news agency News1 reported today. This has raised concerns about targeting Korean users without meeting regulatory requirements.
As per the rules, authorities in South Korea require cryptocurrency exchanges to register before offering trading services to local investors. Foreign exchanges must also register locally or stop providing services in Korean language to operate legally in the country.
FIU to Investigate OKX
In this matter, the Financial Intelligence Unit (FIU), under the Financial Services Commission (FSC), is expected to investigate OKX following a report from the Digital Asset Exchange Association (DAXA), reflecting the government’s commitment to enforcing regulatory compliance in the crypto industry.
DAXA’s move against OKX shows that South Korea’s top cryptocurrency exchanges are working together to follow the rules and keep the crypto market fair. As authorities crack down on unregistered virtual asset providers, including foreign exchanges targeting Korean investors, the investigation into OKX could shape the future of cryptocurrency in South Korea.
South Korea Threatens Criminals Life-time Imprisonment
If proven, follows a grave punishment. South Korea has strict rules for virtual asset service providers (VASPs) to prevent fraud. They’re making sure companies hire top-notch executives to keep an eye on things. They’re also cracking down on scams in the market, with higher punishments like lifetime imprisonment for those who try to make money illegally.
There are also ongoing discussions on surveillance for irregular transactions and the establishment of self-regulatory measures. The importance of removing illegal activities to foster industry growth has been emphasized, with active surveillance crucial for maintaining market integrity.
In a significant move, South Korea’s Financial Services Commission declared on February 7th the Enforcement of the Virtual Asset User Protection Act, set to be in action from July 19th.
This crackdown shows that South Korea is taking proactive steps to mitigate any major financial loss caused by scammers or exchanges doing illegal activities to keep the market fair for all.