South Korean Regulators Urge The Public To Report Illegal Crypto Exchanges

South Korean regulators are illegal crypto exchanges. (Photo; Doc. Bitcoinist)

JAKARTA - South Korea's Financial Intelligence Unit (FIU) urges the public to report crypto exchanges operating without a license or illegal. FIU is working with the association of the South Korean crypto exchange, the Digital Asset Exchange Association (DAXA), to oversee the development of the crypto asset market in the country of ginseng.

This strategy includes a two-stage assessment, namely DAXA which will evaluate the initial report, then FIU will carry out further investigations. The main target is the domestic and foreign virtual asset business operators who offer services to Korean citizens without complying with the rules contained in Article 7 of the Special Financial Information Law.

DAXA confirms that operators who violate the rules may be subject to strict legal sanctions. To simplify this process, DAXA has provided a special email address so that people can send information about suspicious activities.

This move is part of South Korea's efforts to increase regulatory oversight in the crypto sector. The government has also taken other measures, such as requiring Democratic parliamentary candidates to disclose their crypto holdings, as a form of commitment to transparency and ethics in politics and finance.

The market for digital assets in South Korea experienced rapid growth, with a market capitalization value of 21.1 billion (Rp 327.8 trillion) in the first half of 2023. This is reflected in the increasing profits for virtual market operators, which show a strong and growing sector.

Central Bank CBDC Trial

In addition, South Korea's central bank also announced plans to involve 100,000 citizens in central bank digital currency (CBDC) trials by 2024. This initiative places South Korea as one of the countries at the forefront of integrating digital currency solutions in its financial system, reflecting a progressive and innovative approach to financial technology.

South Korean authorities' efforts to regulate and oversee crypto markets are not only useful for protecting investors but also for establishing a stable and reliable digital asset environment. As the world increasingly turns to digital currencies and assets, South Korea's proactive and comprehensive regulatory measures can be an example for other countries facing this complex and rapidly changing landscape.