OKX Jumpstart faces the risk of being investigated in Korea
The OKX exchange launchpad platform was accused by the Korea Association of Cryptocurrency Exchange Platforms of not having a proper license.
OKX Jumpstart faces the risk of being investigated in Korea
South Korean authorities are said to have received a request to investigate the cryptocurrency exchange OKfor allegedly promoting the Jumpstart program to investors in the host country without registration.
Specifically, DAXA - the Korean Association of Cryptocurrency Exchange Platforms consisting of five leading cryptocurrency exchanges Upbit, Bithumb, Korbit, Coinone and Gopax - has filed a lawsuit with the country's Financial Intelligence Unit. (FIU) for operating without the appropriate registration license.
Accordingly, OKX allegedly paid influencers (KOLs) in the cryptocurrency community on the Telegram platform to market the illegal program Jumpstart - the Launchpad platform of the OKX exchange, for allowing users to access tokens of potential projects about to be listed on OKX.
FIU said it is verifying the information and, if true, will begin an investigation into the exchange.
In 2021, the Financial Services Commission (FSC) required all cryptocurrency exchanges to register with regulators before offering trading services, and banned all foreign exchanges operating in Korea without a license.
By August 2022,FSC has blocked 16 crypto exchangesin foreign countries that have not yet undergone registration include KuCoin, MEXC, Phemex, XT.com, Bitrue ZB.com, Bitglobal, CoinW, CoinEX, AAX, ZoomEX, Poloniex, BTCEX, BTCC, DigiFinex and Pionex.
FSC believes that the above platforms have targeted Korean customers through Korean-language websites and consumer stimulus promotions. All of these activities fall underLaw Financial Transaction Report.
The penalty for operating illegal business activities for unregistered organizations in Korea can be up to five years in prison or a maximum fine of 50 million Korean won (38,000 USD).
DAXA was founded in 2022the collapse of the Terra-Luna cryptocurrency projectto take timely action on events that have the potential to impact the Korean cryptocurrency ecosystem. In November 2022, this association alsowarningKava's USDX stablecoin crashed.
