South Korea is currently investigating whether OKX, a major global cryptocurrency exchange, is operating without proper registration in the country. The investigation is part of a larger crackdown on unregistered digital asset providers in South Korea. Key developments include:
OKX under scrutiny
As News1 reported, OKX, the world’s third largest cryptocurrency exchange, was investigated for allegedly promoting services such as the ‘OKX Jumpstart’ platform to Korean investors through Telegram influencers. I am receiving it. This has raised concerns about OKX targeting Korean users without meeting regulatory requirements.
In Korea, cryptocurrency exchanges must register before providing trading services to local investors. Foreign exchanges must also register locally or stop providing services in Korean to legally operate in that country.
Read more: South Korea Cryptocurrency Regulation: What Investors Need to Know
FIU investigation
The Financial Intelligence Unit (FIU) under the Financial Services Commission (FSC) is expected to investigate OKX based on a report from the Digital Asset Exchange Association (DAXA). This joint effort between Korea’s top cryptocurrency exchanges demonstrates their commitment to strengthening regulatory compliance.
If proven guilty, OKX could face serious consequences. In order to prevent fraud, Korea has strict regulations that can punish virtual asset service providers (VASPs) for illegal financial activities, including life imprisonment.
Maintain market integrity
Strengthening surveillance for illegal transactions and preparing self-regulation measures are being discussed. A focus on eliminating illegal activity in the industry is critical to fostering growth, and active surveillance plays a pivotal role in maintaining market integrity.
Korea’s preemptive measures
The Financial Services Commission declared that the Virtual Asset User Protection Act will take effect from July 19th. These proactive measures highlight Korea’s commitment to mitigating financial losses that may arise from fraudsters or exchanges engaging in illegal activities and ensuring fair markets for all.
In summary, the investigation into OKX is an important moment shaping the future of Korean cryptocurrency and highlights Korea’s commitment to maintaining a safe and regulated environment for the growing cryptocurrency industry.
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