The Digital Asset eXchange Alliance (DAXA), a South Korean self-regulatory body grouping the country's five registered won-pair crypto exchanges, said on Wednesday it had referred 12 unlicensed crypto operators to the police, in what it described as the first such joint action by its members.
Korean Exchange Alliance DAXA Reports 12 Unlicensed Crypto Operators to Police
10 June 2026 - 08:57 CEST
By Oihyun Kim
First coordinated industry referral
The targets include eight unlicensed over-the-counter (OTC) desks and four unregistered overseas exchanges allegedly soliciting Korean customers, DAXA said. OTC desks are brokered crypto venues operating outside public order books. None of the 12 was named.
The probe ran from February through April. Operating without registration with South Korea's Financial Intelligence Unit (FIU) is punishable by up to five years in prison or a 50mn won ($36,500) fine.
"This focused investigation is the first case in which registered virtual asset service providers have cooperated to respond to illegal activity," Jae Jin Kim, DAXA's vice president, said in the press release.
OTC fees up to 62 times higher
The OTC desks charged commissions of 1.5% to 10% per transaction, according to DAXA, up to 62 times higher than the average of 0.16% at the five registered won-pair exchanges. DAXA characterized the spread as evidence of demand from criminal funds tied to drugs and gambling.
The four unnamed overseas exchanges ran Korean-language sites, supported won-denominated pricing and conducted local marketing, according to DAXA.
Unusual move by global standards
Direct enforcement action by an industry self-regulatory body against non-member operators is unusual internationally. The Japan Virtual and Crypto Assets Exchange Association (JVCEA) largely confines itself to rule-setting for member exchanges, while Japan's Financial Services Agency (FSA) handles warnings against unlicensed operators.
DAXA itself is not a legally designated self-regulatory organization (SRO). A formal SRO framework is under discussion as part of the proposed Digital Asset Basic Act.
Its membership is closed at five: Upbit, Bithumb, Coinone, Korbit and Gopax. Together, they hold every registered won-pair trading licence in the country, making them the sole gateway for foreign exchanges and traditional financial institutions seeking access.
The press release did not detail coordination with the FIU or police prior to the referral, and the FIU did not immediately respond to a request for comment.
