The Digital Asset eXchange Alliance (DAXA) referred four overseas virtual asset exchanges to South Korean police after identifying evidence that they targeted domestic investors without registering as Virtual Asset Service Providers (VASPs). DAXA said the exchanges offered Korean-language websites and applications, displayed prices in Korean won and operated reward centers offering Tether (USDT) or proprietary points linked to logins, deposits and trading volume. Operating without registration under Article 7 of South Korea’s Act on Reporting and Using Specified Financial Transaction Information can carry up to five years in prison or a fine of up to 50 million won, or about $37,000, under Article 17. DAXA said the referral, made on Aug. 31 and announced Sept. 1, was its second this year. In June, it and domestic VASPs referred 12 entities, including eight illegal over-the-counter exchanges and four unregistered overseas exchanges. The alliance plans to continue monitoring unregistered operators as South Korea expands oversight of its virtual asset market.