- Cryptocurrency exchange OKX is allegedly facing a probe in South Korea.
- The South Korean government is currently strengthening industry regulations.
- Regulatory authorities have set new enforcement consequences for crypto law breakers.
The crypto regulatory landscape in South Korea is currently undergoing an intense reformation, cracking down on violating exchanges and as the government seeks to prioritize investor protection. The government has recently unveiled new regulatory standards for entities operating within the region, asserting the need for compliance and regulated operations.
Against this backdrop, cryptocurrency exchange OKX might be the latest to land in South Korea’s regulatory crosshairs, as reports allege the exchange’s unlawful operations in the country.
South Korea to Sanction OKX?
On Wednesday, February 7, local media reported that OKX has come under the regulatory scrutiny of the South Korean Digital Asset Exchange Association (DAXA) and the Financial Intelligence Unit (FIU).
The exchange allegedly facilitated unlawful service promotions of its centralized exchange platform, Jumpstart, to South Korean investors without obtaining the necessary registration. While OKX does not explicitly offer domestic services to investors in South Korea or offer a Korean language-based website, the report asserted that the exchange employed media influencers to promote its operations via social media platform Telegram.
An investigation is allegedly underway by the Financial Intelligence Unit to determine whether OKX breached South Korea’s regulatory standards and the extent of its violations. DailyCoin reached out to OKX for a comment but has yet to receive a response..
The reported South Korea OKX crackdown is a part of the ongoing push by South Korean regulatory bodies for a regulated crypto industry, particularly in the light of the market manipulations witnessed involving the likes of Terraform Labs and Haru Invest.
Read more on the SEC’s newly revised rule targeting strengthened oversight on crypto and DeFi:
How the SEC’s “Dealer” Rule Changes Crypto Oversight
OKX is expanding its operations despite regulatory debacle, find out more:
OKX Debuts Crypto Exchange and Web3 Wallet in Argentina