South Korea Establishes Reporting Period for Unlicensed Crypto Exchanges
Financial authorities in South Korea are giving users the opportunity to report any unlicensed cryptocurrency exchanges operating within the country. This initiative is a collaboration between the Digital Asset Exchange Association (DAXA) and South Korea’s Financial Intelligence Unit (FIU), with the goal of identifying virtual asset business operators that are targeting Korean citizens without complying with regulations.
The reporting process involves an initial review by DAXA, followed by a detailed examination by the FIU. If operators continue to conduct undeclared business activities, appropriate measures may be taken, including involving investigative agencies.
Dedicated Tip Email Address for Reporting
To facilitate the reporting process, DAXA has provided a dedicated tip email address where the public can submit detailed information about suspicious businesses, including reasons for suspicion and evidence of undeclared activities.
Part of Broader Regulatory Oversight Strategy
This move is part of South Korea’s broader strategy to increase regulatory oversight in the crypto sector. In November, the Democratic Party of South Korea required parliamentary candidates to disclose their crypto holdings in order to enhance transparency in political circles.
Growth in the South Korean Digital Asset Market
The South Korean digital asset market has experienced significant growth in 2023. The market’s total capitalization reached $21.1 billion in H1 2023, accompanied by an 82% increase in operating profits for virtual marketplace operators, totaling $168 million.
Testing Central Bank Digital Currency
In addition, South Korea’s central bank announced plans to involve 100,000 citizens in testing its upcoming central bank digital currency (CBDC) in 2024.
Hot Take: South Korea Takes Action Against Unlicensed Crypto Exchanges
South Korea is cracking down on unlicensed cryptocurrency exchanges with a new reporting system. Financial authorities are urging the public to report any suspicious businesses that are targeting Korean citizens without complying with regulations. This initiative, led by the Digital Asset Exchange Association and the Financial Intelligence Unit, aims to increase regulatory oversight in the crypto sector.
To support the reporting process, a dedicated tip email address has been provided for submitting detailed information about undeclared activities. This move is part of South Korea’s broader strategy to enhance transparency and accountability in the digital asset market. The country has seen significant growth in this sector, with a total capitalization of $21.1 billion and an 82% increase in operating profits for virtual marketplace operators.
In addition, South Korea’s central bank plans to involve 100,000 citizens in testing its central bank digital currency next year, further demonstrating the country’s commitment to embracing innovative financial technologies.
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