coinspress.com
A consortium of major cryptocurrency exchanges in South Korea has raised concerns regarding the alleged unauthorized operations of the global crypto trading platform OKX within the country.
This consortium, known as the Digital Asset Exchange Alliance (DAXA), has reportedly informed local authorities about OKX’s activities.
Despite not explicitly targeting South Korean investors, OKX stands accused by DAXA of indirectly promoting its Jumpstart program to the local crypto community through influencers on Telegram. It is claimed that OKX paid for promotional activities within Telegram groups to garner attention for Jumpstart.
In South Korea, cryptocurrency exchanges must register with regulatory authorities before providing trading services to residents. This regulatory requirement effectively bars foreign exchanges from legally catering to South Korean investors. In 2021, the Financial Services Commission directed 27 foreign exchanges to either register locally or cease offering services in the Korean language.
However, despite these regulations, South Korean users can still access foreign exchanges. Regulators are primarily concerned with whether these platforms actively target local traders through marketing efforts or by providing services in the Korean language.
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Following DAXA’s report, the Financial Intelligence Unit, a regulatory body under the FSC, is expected to launch an investigation into OKX’s operations.
DAXA was established in 2022 in response to the collapse of the Terra-Luna crypto project, with the aim of collectively addressing various issues affecting the local crypto ecosystem. Its members, including Upbit, Bithumb, Korbit, Coinone, and Gopax, collectively represent a significant portion of the local cryptocurrency trading volume.