South Korean Financial Authorities Investigate OKX for Unregistered Operations

According to reports from local news outlets, the financial authorities of South Korea are conducting an investigation into the worldwide cryptocurrency exchange OKX into the possibility that it is operating unlawfully within the nation.

This comes as a result of allegations that OKX pushed its services to users in South Korea without first obtaining the necessary registration.

The operations of OKX were apparently brought to the attention of the Financial Intelligence Unit (FIU) in February of 2024 by the Digital Asset Exchange Association (DAXA), which is a group that represents the biggest cryptocurrency exchanges in South Korea.

 This resulted in an inquiry being conducted to determine whether or not the exchange had broken rules by targeting investors from South Korea without being registered.

a news agency based in South Korea, revealed that OKX actively advertised its "Jumpstart" token sales platform to local consumers. This was done despite the fact that OKX did not have a website in Korean and did not have necessary registration.

For the purpose of attracting investors, the article asserts that OKX even utilized South Korean influencers on Telegram messages.

There are stringent rules in place in South Korea that require cryptocurrency exchanges to register before they can provide their services to people. The failure to comply with these requirements may result in significant fines from the authorities in charge of the financial sector. 

Earlier this month, the authorities made the announcement that executives in the cryptocurrency industry are need to be registered before they can begin their positions.

Keep an eye out for more updates!