In a joint effort by the South Korean Financial Intelligence Unit (FIU) and the Digital Asset Exchange Association (DAXA), financial authorities in South Korea have initiated a campaign urging consumers to disclose any unauthorized cryptocurrency exchanges operating within the country.

Prominent virtual asset exchanges, including Upbit, Bithumb, Coinone, Korbit, and Gopax, are part of the Digital Asset Exchange Association.

The authorities claim that this initiative is aimed at identifying both local and overseas operators of virtual asset businesses that may be targeting Korean citizens in violation of Article 7 of the Specific Financial Information Act.

As part of the process, consumers are encouraged to submit reports disclosing any unauthorized cryptocurrency exchanges.

The collected information will be reviewed by DAXA, and the findings will then be forwarded to the FIU. The FIU will respond to DAXA with the operator’s status and any notification requirements.

If operators persist in engaging in “undeclared business activities,” the FIU may take appropriate actions in coordination with investigating agencies.

Reports submitted by consumers should include all relevant company information, grounds for suspicion, and evidence of the company’s undeclared commercial activities. DAXA has established a dedicated email address for receiving tips from the public.

South Korea’s involvement in the crypto market is growing, and this latest development is part of a broader trend.

In November, legislative candidates for the Democratic Party of South Korea were required to disclose their cryptocurrency holdings for transparency reasons.

Additionally, the South Korean Financial Supervisory Service (FSS) announced in October that it is preparing regulations to augment the Virtual Asset Users Protection Act, approved earlier in 2023.