South Korea Investigates OKX: Allegations of Unregistered Crypto Operations Surface
Feb 8, 2024
South Korea's financial authorities are investigating global crypto exchange OKX for potentially operating illegally within the country. The probe 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, 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. According to reports from News1, OKX promoted its "Jumpstart" token sales platform to local users without offering a Korean-language website and lacking proper registration. The report also claims OKX used South Korean influencers on Telegram to attract investors. South Korea has strict regulations requiring crypto exchanges to register before offering services to residents, with failure to comply resulting in hefty penalties from financial regulators. Additionally, recent announcements state that crypto executives must be registered before assuming their positions.