South Korea Reportedly Probes OKX for Unlicensed Operations

• OKX reportedly solicited investors in South Korea for its ‘Jumpstart’ token sale platform.
• The country’s financial authorities may impose fines for non-registration.

According to reports, OKX is under investigation by the Financial Intelligence Unit (FIU) of South Korea due to claims that the company was running an unlicensed crypto exchange.

An inquiry against the exchange was initiated when the Digital Asset Exchange Association (DAXA) informed the FIU about OKX’s operations, as reported on February 7 by the South Korean news portal News1. South Korean cryptocurrency users were approached in December 2023 by DAXA and the FIU, who sought any information on unauthorized cryptocurrency exchanges in the nation.

Stringent Compliance Norms

OKX reportedly solicited investors in South Korea for its ‘Jumpstart’ token sale platform without first obtaining the necessary registrations, despite the fact that the company does not maintain a website in Korean. The exchange reportedly promoted its services using South Korean Telegram influencers, according to News1.

Exchanges must register with the South Korean authorities before providing cryptocurrency services to locals. The country’s financial authorities may impose fines for non-registration. Crypto offenders dealing with over $3.8 million in illicit gains might face life in jail, according to South Korea’s Financial Services Commission, who made the announcement on February 7.

Earlier, in a matter of minutes on January 23, the price of OKX’s token, OKB, fell from $46.80 to $25.10. This was a 48% decline. Before the market recovered, the flash fall reduced its value by $6.5 billion. However, the price recovered and was trading back at the initial levels. The exchange announced that users affected by the flash fall would be compensated.

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