South Korea has taken a major step towards regulating its cryptocurrency market with the discovery of 12 illegal virtual asset businesses operating outside the law.
The investigation by Digital Asset eXchange Alliance (DAXA), in collaboration with registered Virtual Asset Service Providers, found that these unregistered entities were charging fees up to 62 times higher than those at regulated domestic exchanges. This excessive fee-charging has exposed investors to significant financial risks and potential fraud.
DAXA and VASPs have reported their findings to law enforcement, marking a significant step in South Korea's efforts to bring order to its rapidly growing cryptocurrency market.