A Group of South Korean Exchanges Reports OKX to Financial Authorities
A group of cryptocurrency exchanges in South Korea, known as the Digital Asset Exchange Alliance (DAXA), has filed a complaint against rival exchange OKX for operating without the required regulatory approvals. DAXA received the initial complaint and forwarded it to the Financial Intelligence Unit (FIU), an arm of the Financial Services Commission (FSC). This move comes after OKX was accused of targeting local traders without a license.
OKX Accused of Advertising Jumpstart Program to Local Investors
OKX is facing allegations that it advertised its Jumpstart Program to local investors by using Telegram influencers. It is claimed that OKX paid local Telegram communities to promote the program. Similar cases have been seen in the United States, where exchanges like Binance faced legal action for targeting US investors. The FIU will now investigate these claims and take necessary actions based on its findings.
Issue of Local Language Support in OKX’s Operations
The investigation into OKX’s operations will also focus on the issue of language support. Offering Korean language support on their websites is a significant criterion for determining if exchanges operate domestically. Currently, OKX does not provide Korean language support, which raises concerns about its targeting of local traders in South Korea. In the past, South Korean authorities have flagged other crypto-related companies for offering Korean language support on their websites.
South Korean Authorities’ Efforts to Protect Digital Asset Investors
In recent months, South Korean authorities have been taking extensive measures to protect digital asset investors in the country. They have set up investigation units and tightened regulations to ensure user protection. The law prohibits foreign exchanges from offering services to local investors without proper approval, and deadlines have been issued for cryptocurrency exchanges to register or cease operations.
Hot Take: South Korea Exchange Association Petitions OKX for Operating Without Approval
The Digital Asset Exchange Alliance (DAXA), a group of South Korean exchanges, has reported OKX to the financial authorities for operating without the required regulatory approvals. The complaint alleges that OKX targeted local traders without a license. The Financial Intelligence Unit (FIU) will investigate the claims and take necessary actions based on its findings. This incident highlights the importance of complying with regulatory requirements and offering local language support in cryptocurrency operations. South Korean authorities have been actively working to protect digital asset investors by implementing stricter regulations and enforcement measures. It remains to be seen how this situation will unfold and what actions will be taken against OKX.
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