South Korea Investigates OKX Over Improper Registration
Authorities in South Korea are launching an investigation into major cryptocurrency exchange OKX due to complaints about the platform’s improper registration in the country. The Financial Intelligence Unit (FIU) received these complaints from the country’s Digital Asset Exchange Association (DAXA).
Complaints from DAXA
DAXA, which consists of five major South Korean crypto trading platforms, including Upbit, Bithumb, Coinone, Korbit, and Gopax, received information about OKX’s misconduct from unidentified sources. After conducting its own research, DAXA reported the matter to the FIU.
Violation of Language Support Requirement
One of the requirements for a foreign platform to operate in South Korea is language support. Overseas exchanges must provide content in Korean for easy user assimilation. However, OKX does not support Korean on its website and removed Korean language translations and shut down official local community social media channels in September 2021. This means that the platform is not properly registered to offer services to residents.
Accusations Against OKX
The reports received by DAXA accused OKX of promoting its Jumpstart program and other services in Telegram communities using influencers. The FIU plans to investigate these allegations before determining the appropriate next steps.
South Korea’s Hostile Stance on Crypto
South Korea has become increasingly hostile towards cryptocurrencies. The country implemented strict measures following the collapse of the Terra ecosystem in 2022 and now requires regular reports from exchanges operating within its borders. Additionally, spot Bitcoin exchange-traded funds have been banned to stabilize the financial market and protect investors.
Meeting Between FSS Chief and U.S. SEC Chair
The approval of spot Bitcoin ETFs by the U.S. Securities and Exchange Commission (SEC) did not immediately change South Korea’s stance on such investment vehicles. However, South Korea’s Financial Supervisory Service (FSS) chief plans to meet with U.S. SEC chair Gary Gensler to discuss discount measures like spot Bitcoin ETFs.
Hot Take: South Korea Investigates OKX Over Registration Issues
South Korean authorities are conducting an investigation into major cryptocurrency exchange OKX due to complaints about the platform’s improper registration in the country. The exchange is accused of violating the requirement for language support and promoting services through influencers. This investigation comes as South Korea maintains a hostile stance towards cryptocurrencies and implements strict measures to regulate the industry. The meeting between the FSS chief and the U.S. SEC chair highlights South Korea’s interest in discussing discount measures like spot Bitcoin ETFs. It remains to be seen how this investigation will unfold and what actions will be taken against OKX.
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