South Korea’s five biggest crypto exchanges will team up with financial regulators to search for “undeclared crypto operators.”
According to News1, the announcement was made by the Digital Asset Exchange Association (DAXA), which comprises the exchanges Upbit, Bithumb, Coinone, Korbit, and Gopax.
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DAXA will team up with the Financial Intelligence Unit (FIU), which answers to the Financial Services Commission – the nation’s top financial regulator.
The parties have asked members of the public to come forward with anonymous tipoffs about “undeclared virtual asset business operators.”
South Korea’s crypto exchange industry is one of the most tightly regulated crypto sectors in the world.
Currently, only the five DAXA members have operating permits that allow them to offer crypto-to-fiat trading pairs.
This has given rise to several “unofficial” South Korean crypto trading platforms.
Many of these platforms advertise their services in crypto-themed public chat rooms and social media sites.
DAX and the FIU asked whistleblowers to provide “business-related information” on these “unregistered platforms.”
They also called for whistleblowers to provide “evidence of unreported business activities.”
DAXA said it would carry out “initial reviews” of whistleblower reports and would pass on relevant information to the FIU.
However, DAXA and the FIU are not only targetting “unreported” South Korea-based crypto firms.
The bodies said their targets were “domestic and overseas virtual asset business
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