DAXA Flags Four Unreported Overseas Crypto Exchanges for Police Investigation
The Digital Asset eXchange Alliance (DAXA) has flagged four unreported overseas cryptocurrency exchanges that have been operating for South Korean users.
DAXA identified these exchanges through a thorough examination of their websites and mobile applications, which revealed signs of business targeting South Korean users, including providing official Korean-language services and displaying trading prices converted into won (KRW).
The unreported overseas exchanges fall outside the supervision and oversight of South Korea's financial authorities, which means their anti-money laundering (AML) and user protection systems may be relatively weak.
DAXA has requested a police investigation into these four exchanges, citing that they failed to meet reporting obligations under the Act on Reporting and Using Specified Financial Transaction Information. Those operating without filing a report can face up to 5 years in prison or a fine of up to 50 million won.