South Korean financial authorities request reports on unlicensed crypto exchanges.
Financial regulators in South Korea issued an update on December 4 requiring users to report any unlicensed cryptocurrency exchanges that offer services to users in the region.
The Digital Asset Exchange Association (DAXA) and South Korea's Financial Intelligence Unit (FIU) collaborated on the initiative. DAXA includes five of the major virtual asset exchanges operating in the country, such as Upbit, Bithumb, Coinone, Korbit and Gopax.
According to the regulators, the goal of receiving these reports is to find domestic and foreign virtual asset trading operators targeting Korean nationals and does not fall under Article 7 of the Special Financial Information Act.
Reports are first evaluated by DAXA, then the results are transmitted to the FIU, which then responds to the former to determine the status of the operator and inform him.
If DAXA's authorized operators continue to engage in “undisclosed business activities,” the FIU “plans to take necessary measures, including notifying the investigative agency.”
RELATED: North Korean Hackers Made $3B in Crypto Over Six Years: Report
DAXA said that reports can be filed with the tip's email address and must include all information related to the business, grounds for suspicion and evidence of unknown business activities.
This development comes as South Korea continues to increase its involvement in the crypto industry. On November 14, South Korea's Democratic Party ordered its parliamentary candidates to disclose any personal crypto holdings for “transparency” purposes.
In October, South Korea's Financial Supervisory Service (FSS) announced that it had begun preparations to develop regulations to supplement the Virtual Asset Consumer Protection Act, which was passed earlier in 2023. According to the FSS, the new rules are expected to come into effect. January 2024
In the year On November 23, South Korea's central bank announced that it plans to invite 100,000 citizens to its upcoming central bank digital currency (CBDC) in 2024.
Magazine: Another $18.9m Hong Kong exchange scandal, HTX ‘sorry' airdrop: Asia Express
