The South Korean financial authorities have partnered to combat unauthorized cryptocurrency exchanges by opening a reporting channel for individuals to submit information on such entities. The Digital Asset Exchange Association (DAXA) has teamed up with the Financial Intelligence Unit (FIU) to identify undeclared virtual assets. This partnership involves five major known virtual asset (cryptocurrency) exchanges. They aim to combat undeclared virtual asset business activities targeting Korean citizens.

To address the issue of virtual asset business operators failing to report their activities as mandated by the Specific Financial Information Act, DAXA has initiated a reporting system for undeclared virtual asset business operators. Reports can be submitted through Docsa’s tip email and must include business-related information, evidence of unreported business activities, and a reason for suspecting an unreported business.

The FIU plays a pivotal role in assessing reported cases and making informed decisions regarding the classification of virtual asset businesses. If the FIU determines that a business is operating without proper authorization, it will notify the business operator and take necessary enforcement measures, including collaborating with investigative agencies.

The collaboration between DAXA and FIU is a significant step towards ensuring compliance and transparency in the virtual asset industry in Korea and demonstrates a commitment to protecting Korean citizens from potential risks associated with undeclared virtual asset businesses.