South Korea Financial Authorities Probes Crypto Exchange OKX for Alleged Unregistered Operations
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South Korea Financial Authorities Probes Crypto Exchange OKX for Alleged Illegal Operations

South Korea’s financial authorities are investigating global crypto exchange OKX for potentially illegal operations within the country, according to local news reports

This follows accusations that OKX promoted its services to South Korean users without proper registration.

The Digital Asset Exchange Association (DAXA), representing leading South Korean crypto exchanges, reportedly brought OKX’s activities to the attention of the Financial Intelligence Unit (FIU) in February 2024. 

This triggered an investigation into whether the exchange violated regulations by targeting South Korean investors without being registered.

See Also: OKX Launched Crypto Exchange Services And Non-custodial Web3 Wallet In Argentina

News1, a South Korean news outlet, reported that OKX specifically promoted its “Jumpstart” token sales platform to local users, despite not offering a Korean-language website and lacking proper registration. 

The report claims OKX even used South Korean influencers on Telegram to attract investors.

South Korea has strict regulations requiring crypto exchanges to register before offering services to residents. 

Failure to adhere to these regulations can result in hefty penalties from financial regulators. 

Recently, the authorities announced that crypto executives have to be registered before being able to commence their position.

Crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions. Crypto is not a legal tender and is subject to market risks. Readers are advised to seek expert advice and read offer document(s) along with related important literature on the subject carefully before making any kind of investment whatsoever. Crypto market predictions are speculative and any investment made shall be at the sole cost and risk of the readers.