South Korea Probes OKX for Alleged Unauthorized Operations

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South Korea’s financial watchdogs have launched an investigation into the global cryptocurrency exchange OKX over allegations of illegal operations within the nation. Reports from local media suggest that OKX might have offered its services to South Korean users without the necessary legal permissions. The scrutiny comes amid claims that the exchange engaged in promotional activities targeted at South Korean investors without registering as required by law.

Trigger for Investigation: DAXA’s Alert

The investigation was set in motion in February 2024 when the Digital Asset Exchange Association (DAXA), a consortium of top South Korean crypto exchanges, alerted the Financial Intelligence Unit (FIU) about OKX’s activities. The concern was that OKX might have breached regulatory standards by soliciting South Korean users without official registration, thereby potentially engaging in unauthorized operations.

OKX’s Promotional Tactics Under Scrutiny

According to News1, a prominent South Korean news outlet, OKX targeted local investors through its “Jumpstart” token sales platform, despite lacking a Korean-language website and the requisite legal registrations. Furthermore, the exchange is accused of leveraging South Korean influencers on Telegram to attract potential investors, a move that has drawn significant attention from regulators.

South Korea’s Regulatory Framework for Crypto Exchanges

South Korea enforces stringent regulations on cryptocurrency exchanges. These laws mandate that exchanges must register with the authorities before offering services to its residents. The regulations are in place to protect investors and maintain a transparent and secure financial environment. Recently, South Korea has tightened its regulatory grip by requiring crypto executives to register before assuming their roles, emphasizing the country’s commitment to strict oversight of the crypto industry.

Raj Sharma
Raj Sharma
I have been involved in the blockchain industry for over 5 years and have an extensive understanding of the technology. My career in cryptocurrency started with writing articles about blockchain technology and its use cases for various publications.

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