OKX may be under investigation in South Korea following allegations of rule violations

According to local media, the Digital Asset Exchange Alliance, a working group consisting of five leading Korean cryptocurrency exchanges, has reported global trading platform OKX to authorities for allegedly operating locally. method without proper registration.

Although OKX does not explicitly provide services to Korean investors, DAXA alleges the exchange promoted its Jumpstart program to local crypto users through influencers. influence on Telegram, news agency News1 reported on Wednesday, citing an industry source familiar with the matter. The source said that OKX paid the Telegram community to promote Jumpstart.

South Korea requires every cryptocurrency exchange to register with regulators before offering trading services to its citizens, which has banned all foreign exchanges from serving it legally. for Korean investors. In 2021, the country's Financial Services Commission (FSC) notified 27 foreign exchanges to register locally or withdraw Korean-language services from their platforms.

However, that does not prohibit Korean users from accessing foreign exchanges. The primary concern of Korean regulators is whether foreign cryptocurrency platforms target local traders through marketing, offer trading in Korean won, or provide trading services. whether the service is in Korean or not.



According to News1, the Financial Intelligence Unit, the FSC's regulatory watchdog, is expected to open an investigation into OKX following DAXA's report.

DAXA was founded in 2022 after the collapse of the Terra-Luna cryptocurrency project to act together on various events that could affect the local cryptocurrency ecosystem. Its members – Upbit, Bithumb, Korbit, Coinone and Gopax – account for more than 99% of local cryptocurrency trading volume.

OKX may be under investigation in South Korea following allegations of rule violations