South Korean financial authorities issued an update on December 4th, urging consumers to report any unauthorized crypto exchanges operating in the country.
This collaborative effort is being led by the South Korean Financial Intelligence Unit (FIU) and the Digital Asset Exchange Association (DAXA), which includes prominent exchanges such as Upbit, Bithumb, Coinone, Korbit, and Gopax.
According to the authorities, the collection of these records is intended to identify both domestic and foreign operators of virtual asset businesses who may be providing services to Korean customers in violation of Article 7 of the Specific Financial Information Act.
To carry out this initiative, DAXA will review the reports and share the findings with the FIU. Following that, the FIU will notify DAXA of the operator’s status and any notification requirements.
If operators continue to engage in “undeclared business activities,” the FIU will take appropriate action, including contacting law enforcement.
Reports should include detailed company information, grounds for suspicion, and evidence of undeclared commercial activity. DAXA has set up a dedicated email address for reporting tips about unauthorized crypto exchanges.
South Korea’s involvement in the crypto market is growing, and this recent development is consistent with the country’s efforts to regulate and monitor crypto-related activities.
The Virtual Asset Users Protection Act was passed earlier in 2023, and the South Korean Financial Supervisory Service (FSS) announced plans to strengthen regulations in support of this legislation in October.
