- The Digital Asset Exchange Alliance claims OKX operated in South Korea without proper registration.
- OKX allegedly targeted South Korean investors via Telegram influencers for its "Jumpstart program."
- This highlights the regulatory challenges in South Korea, where foreign exchanges need registration to serve citizens.
- South Korea is gearing up to implement stricter crypto laws.
- Violations of these laws could result in penalties, including imprisonment for at least one year or fines up to five times the illicit profits.

South Korea's cryptocurrency exchange OKX is currently facing regulatory scrutiny in the region, prompted by allegations of illegal activities. The Digital Asset Exchange Alliance (DAXA), representing major exchanges like Coinone, Bithumb, Korbit, Upbit, and Gopax, has filed a complaint against OKX, accusing it of engaging in unlawful cryptocurrency practices.
Specifically, OKX is accused of orchestrating a Jumpstart Program to attract South Korean investors through telegram influencers, despite being based in Seychelles and not directly targeting South Korean users. These allegations reflect the broader regulatory environment in South Korea, where foreign exchanges must register to operate legally, posing a challenge for them to serve South Korean investors within regulatory bounds.
The DAXA report on OKX has prompted the Financial Intelligence Unit (FIU) to investigate further under the oversight of the Financial Services Commission (FSC), with a focus on enforcing stricter regulations within the crypto industry.
As South Korea prepares to enact tougher cryptocurrency laws, potential penalties include life imprisonment for violations. The Financial Services Commission (FSC) has warned of severe consequences for breaches, with penalties ranging from imprisonment to fines up to five times the illicit profits obtained.
In light of regulatory changes, Lee Bok-hyun, governor of the Financial Supervisory Service (FSS), plans to discuss various financial market aspects, including digital assets, with Gary Gensler, chairman of the US Securities and Exchange Commission (SEC). This follows the SEC's recent approval of Spot Bitcoin ETF proposals, indicating a significant development in regulatory oversight.
Please note that while Voice of Crypto aims to provide accurate information, readers should conduct their own research due to the highly volatile nature of cryptocurrencies.

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