The probe into OKX was initiated following the submission of information by the South Korean Crypto Exchange Association (DAXA), which represents the leading crypto exchanges in South Korea. In December 2023, DAXA and the FIU called on local cryptocurrency users to provide any information regarding crypto exchanges operating without a license in the country.
The regulatory body claims that OKX promoted its unregistered token sale platform, Jumpstart, to South Korean investors even though it did not have a Korean website. To market its services, the exchange relied on local influencers on Telegram.
The FIU stressed that exchanges must obtain regulatory approval before offering cryptocurrency services to South Korean residents. Failure to register can result in significant fines. Just recently, the South Korean Financial Services Commission (FSC) announced that individuals found guilty of earning illegal profits worth $3.8 million could face life imprisonment.
As a recent development, the FSC proposed amendments mandating that new executives of crypto companies must acquire regulatory approval before assuming their roles.