The Financial Intelligence Unit (FIU) of South Korea is reportedly conducting an investigation into OKX in response to allegations that the company operated an unregistered cryptocurrency exchange.
News1, a South Korean news outlet, reported on February 7 that the Digital Asset Exchange Association (DAXA) notified the FIU of OKX’s activities, instigating an inquiry into the exchange.
DAXA and the FIU received requests from South Korean crypto users in December 2023 seeking any information regarding unlicensed cryptocurrency exchanges in the country.
OKX, formerly OKEx, allegedly solicited South Korean investors to use its ‘Jumpstart’ token sales platform without obtaining appropriate registration. It is worth noting that the company does not operate a website in Korea. The exchange allegedly utilized South Korean influencers on Telegram to promote its services, according to News1.
Exchanges must register with South Korean authorities before providing cryptocurrency services to the country’s citizens. The country’s Financial regulators may levy penalties for noncompliance with the registration requirement.
The Financial Services Commission of South Korea imposed a maximum prison sentence of life in prison on February 7 for crypto criminals transacting with illicit profits exceeding $3.8 million.
The price of OKX’s token OKB fell by approximately 48% in minutes on January 23, from $46.80 to $25.10. Before recovery, the flash collapse wiped out $6.5 billion in diluted market capitalization. The price at the time of publication was $48.16 (OKB).
