South Korean Cracks Down on Unlicensed Crypto Exchanges

Financial regulators in South Korea have opened a window for people to come forward. They can report any unlicensed operational crypto exchanges in the country.

Furthermore, on December 4, South Korea’s financial regulators issued an updated statement. They called on users to report any unlicensed cryptocurrency exchanges offering services to users within the region.

The Financial Intelligence Unit (FIU) and the Digital Asset Exchange Association (DAXA) of South Korea completed the project. DAXA has five main operational virtual asset exchanges in the country: Upbit, Bithumb, Coinone, Korbit, and Gopax.

Moreover, the regulators noted that the purpose of seeking such reports is to identify domestic and foreign virtual asset business operators targeting the citizens but without carrying out the work under the footlights of Article 7 of the Specific Financial Information Act.

Additionally, FIU receives reports and results reviewed by DAXA.FIU determines operator status and assesses notification requirements in response to DAXA.

An official of DAXA said that if operators continue “undeclared business activities,” then the FIU “plans to take necessary measures, including notifying the investigative agency.”

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Reports can be sent to the tip email with all pertinent business details. Include reasons and evidence for suspicion regarding undeclared business activities. The email should encompass comprehensive information about the concerned business matter.

This comes as South Korea continues to ramp up its involvement in the nation’s crypto industry. On November 14, the Democratic Party of South Korea mandated that its parliamentary candidates declare any personal cryptocurrency holdings for “transparency” purposes.

In October 2023, the FSS of South Korea expressed its readiness. They planned to initiate preparations for legislation complementary to the Virtual Asset Users Protection Act adopted earlier in the same year.

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The FSS has announced that the new rules could become effective by January 2024. South Korea’s central bank will introduce 100,000 citizens to its upcoming CBDC 2024 on November 23.