<p>Delio, a cryptocurrency lending company based in South Korea, has received a directive from the financial regulatory authority to cease its operations for a duration of three months, according to local news agency <a href="https://www.yna.co.kr/view/AKR20230901085600002?input&#61;1195m" rel="noopener noreferrer nofollow">Yonhap</a>. Additionally, the company has been levied with a fine amounting to KRW 1.896 billion ($1.4 million).</p><h2 id="header-0">Executive dismissal recommended</h2><p>This announcement was made on September 1 by the Financial Intelligence Unit (KoFIU) under the South Korean Financial Services Commission. In addition to the measures mentioned above, the KoFIU advised the company to remove one of its executives.</p><p>As a virtual asset service provider (VASP) registered with the financial regulatory authority, Delio offered deposit services with an annual yield reaching up to 10.7%. However, in June of this year, the company abruptly halted its withdrawal services, prompting investigations conducted by both the KoFIU and public prosecutors.</p><h2 id="header-1">Involvement with unregistered VASPs</h2><p>The KoFIU saw that Delio had engaged in trading activities with unregistered VASPs and had also breached the restrictions on the trading of affiliate-issued virtual assets. These actions are prohibited under the Financial Transaction Information Act.</p><p>The financial authority identified a total of 171 instances in which Delio facilitated the transfer of its customers’ virtual assets to unregistered VASPs located outside the country. Additionally, the authority also uncovered the company’s engagement in storing the virtual assets of unregistered VASPs.</p><p>It was also discovered that Delio had not only neglected to assess the risks of money laundering before introducing new products or services but had also failed to fulfill Know Your Customer (KYC) obligations.</p>

Korean Financial Authority Orders Suspension and Levies $1.4M Fine on Crypto Lender Delio

Table of Contents

CoinNess Global

Other articles published on Sep 4, 2023

Stellar's XLM Soars 10% Post Market Corrections

UPST Stock Struggles to Defend $30; Is Upstart Stock Bearish?

Serenity Shield Wins "Best Technology Company" at the 6th Annual Burj CEO Awards

South Korea plans to bolster cybersecurity and seize North's crypto

Stake.com Faces $16M in Suspicious Withdrawals: What It Means for Crypto Casinos

JP Morgan Believes the SEC Will Be Forced to Approve Bitcoin ETFs

Join our free newsletter for daily crypto updates!