South Korean Authorities to Investigate OKX for Operating Without Proper Registration
South Korean authorities are set to launch an investigation into OKX over allegations of operating without proper registration within the country, according to the South Korean Digital Asset Exchange Association (DAXA). The Financial Intelligence Unit (FIU) will scrutinize the claims and escalate the matter to law enforcement agencies if OKX is found guilty of providing unregistered services. OKX has not yet made any public statements regarding these allegations.
Past Instances of Overseas Crypto Exchanges Flagged for Potential Breaches
In previous instances, financial authorities flagged 16 overseas crypto exchanges, including MEXC and KuCoin, for potential breaches of the Special Financial Information Law. These exchanges had established Korean-language websites and organized events targeting Korean clients.
Suspicions of Unregistered Operations Arise for OKX
Although OKX does not have Korean language support on its website, suspicions of unregistered operations arose after insiders discovered the exchange’s active promotion of initiatives with local influencers through Telegram. It was revealed that OKX utilized Telegram’s advertisement services to endorse OKX Jumpstart, a platform for token sales.
Authorities Aware of OKX’s Promotional Activities Targeting Korean Communities
A South Korean official disclosed that authorities are aware of OKX’s promotional activities for Jumpstart via paid advertisements on Telegram, specifically targeting Korean communities. While the DAXA spokesperson confirmed forwarding a report on an undisclosed business operator to the FIU, OKX was not mentioned specifically.
Hot Take: South Korea Cracks Down on Unregistered Crypto Exchanges
The South Korean authorities’ investigation into OKX highlights their commitment to cracking down on unregistered crypto exchanges operating within the country. This move comes as part of a larger effort to regulate the cryptocurrency industry and protect investors. By flagging potential breaches of the law and scrutinizing the activities of exchanges, South Korea aims to ensure compliance with registration requirements and prevent unauthorized operations. As the crypto landscape continues to evolve, it is crucial for exchanges to abide by the rules and regulations set forth by the authorities in each jurisdiction they operate in.
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