South Korea's major cryptocurrency exchanges (Upbit, Bithumb, Coinone, Korbit, and Gopax) united under the Digital Asset eXchange Alliance (DAXA) have initiated collaboration with the Financial Intelligence Unit (FIU) to receive reports on unreported virtual asset operators.

DAXA, in cooperation with FIU, has officially started accepting reports on unregistered virtual asset operators targeting domestic individuals in violation of specific financial information laws.

Reports can be submitted through DAXA's designated email, including information on the operator, evidence of unreported activities, and reasons for suspicion.

Upon receiving reports, DAXA conducts an initial review and communicates the findings to FIU.

Subsequently, FIU will determine the status of unregulated virtual asset service providers, and DAXA will notify the involved parties accordingly.

A DAXA spokesperson stated that if an operator persists in unreported activities, FIU will take necessary actions, including notifying law enforcement agencies.

What is DAXA?

The alliance, established in June, aims to fortify investor protections, particularly amid market volatility. Its divisions focus on transaction support, market activity monitoring, compliance monitoring, and training.

The transaction support team actively develops guidelines for digital coin listing and delisting, providing criteria for exchanges to consider, thereby reducing market confusion and safeguarding investors.

The market monitoring team, like its namesake, monitors the market for irregularities, including potential money laundering activities and threats.

In November last year, the Alliance delisted Wemix, a cryptocurrency from Wemade, due to alleged provision of false information.

Wemix however, has since resolved these issues, and is now relisted on most of said exchanges.