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Published February 11, 20243 min read

OKX Under Surveillance in South Korea: Reports and Investigation

CoinMooner Team

The situation around the OKX exchange, located in the Seychelles, has caught the attention of regulators in South Korea. The Coinmooner team brings you a review of the latest developments in this scandal in our new news article, which is gaining traction online by the minute.

OKX, a leading platform serving millions of clients worldwide, is drawing virtual world attention despite its position as a central cryptocurrency exchange. It offers a wide range of products, covering basic trading, innovative derivatives, and numerous investment opportunities, including the use of trading bots and crypto loans. According to the respected CoinMarketCap rating, it has solidified its position as the sixth-largest centralized cryptocurrency exchange globally, with a 24-hour trading volume of $1,290,918,424.

However, according to the DAXA report, which combines the top 5 exchanges (Upbit, Bithumb, Coinone, Korbit, and Gopax), OKX operated in the country without proper registration, although it was not directly targeting South Korean investors. DAXA claims that the exchange actively promoted its Jumpstart program among local cryptocurrency users through Telegram influencers. According to News1 agency, OKX allegedly paid Telegram communities for supporting Jumpstart.

It is expected that the Financial Intelligence Unit (FIU) at the FSC will initiate an investigation into OKX following the DAXA report. Stay tuned to News1 for updates on this matter.

Lately, the South Korean government has been insisting on mandatory registration of every cryptocurrency exchange before providing services to its citizens. The new rule effectively prohibits foreign exchanges from legally serving investors in the country. However, this does not prevent Korean users from accessing platforms abroad.

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Regulators are mainly focused on checking if foreign crypto platforms are targeting local traders through marketing, offering trading in Korean currency, or providing services in Korean language. South Korea's Financial Services Commission (FSC) recently announced tough penalties for crypto-criminals under the country's new crypto law, which came into effect on July 19. Violations of this law could result in imprisonment of at least one year or fines ranging from three to five times the amount of illegal gains.

A similar situation was described in our recent article about the Kucoin crypto exchange, which is also among the top centralized exchanges globally and ranks 5th according to CoinMarketCap. You can read more about it in our article "US Authorities Impose New Sanctions on Top Global Crypto Exchange".

Measures such as mandatory registration of cryptocurrency exchanges and strict penalties for violations of crypto laws can have a positive impact on the industry. These initiatives primarily protect the interests of investors by ensuring a high level of transparency and security in financial markets. Additionally, they aim to counter illegal practices such as money laundering and illicit earnings.

It's important to note that many cryptocurrency exchanges have recently faced illegal activities. A significant event in 2023 involved the world's most popular exchange, Binance, which holds the leading position in terms of popularity. Additional details about this case can be found in our article "Coinmooner Team Sheds Light on Binance and Zhao's Downfall: Unregistered Exchange, Deception, and Swiss Fund Shenanigans Unveiled".

The Coinmooner team is committed to closely monitoring all such news and important regulatory updates. We also urge our readers to always verify current information from various sources and utilize advanced methods to secure their finances in Web3, thereby reducing the risks of losing their funds.

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