South Korean Authorities Investigate OKX Amid Crypto Regulatory Crackdown

The current regulatory landscape for cryptocurrency in South Korea is undergoing significant changes, with a focus on enforcing regulations to protect investors. Recent developments have seen the introduction of new regulatory standards, emphasising the importance of compliance for entities operating within the country.

Amidst this regulatory overhaul, OKX, a cryptocurrency exchange, has reportedly become the subject of scrutiny by South Korean regulatory authorities. Allegations suggest that OKX may have been operating unlawfully within the country.

Reports indicate that both the South Korean Digital Asset Exchange Association (DAXA) and the Financial Intelligence Unit (FIU) are investigating OKX. The exchange is accused of promoting its centralised exchange platform, Jumpstart, to South Korean investors without proper registration. Despite not offering explicit domestic services or a Korean language website, OKX allegedly utilised media influencers on platforms like Telegram to promote its services.

An investigation by the Financial Intelligence Unit is reportedly underway to determine the extent of OKX’s regulatory breaches and whether it violated South Korea’s standards. Requests for comment from OKX by DailyCoin remain unanswered.

This reported crackdown on OKX is part of South Korea’s broader efforts to regulate the cryptocurrency industry, particularly in response to recent market manipulations involving other entities such as Terraform Labs and Haru Invest.