Korea’s DAXA to Implement Consumer Protection Measures for Crypto

Korea’s DAXA to Implement Consumer Protection Measures for Crypto

• Korean Crypto Alliance DAXA announces guidelines for consumer protection.
• The guidelines cover various risk assessment measures.
• The exchanges will offer transaction support to its consumers.

The Digital Asset Exchange Alliance (DAXA) detailed its intention to implement universal standards for transaction support and review, beginning October 10.

The DAXA is a consortium of the five largest cryptocurrency exchanges in Korea: Upbit, Bithumb, Coinone, Korbit, and Gopax. The group banded together in June of 2022 with the aim of fostering the industry’s long-term growth in the region and developing strategies to safeguard consumers better.

Per the announcement, the guidelines cover measures such as intrinsic risk assessment, technical risk assessment, and commercial risk assessment.

In addition, the five exchanges will make their own decisions about transaction support during the listing review process in accordance with their own procedures and standards; however, item evaluation will be in accordance with common guidelines.

However, DAXA is debating the best ways to track and assess the risks associated with various crypto assets. A special focus will be given to the process of selecting and tracking risk indices for LUNA-related stablecoins and coins issued by international trading operators.

If the agreed-upon risk indicators are discovered, the consortium expects to collectively respond within a specific time period, for example, by designating key assets or opting to cease transaction support.

The alliance has also decided upon how many external experts are to be included when evaluating token listings. Every company’s listing review committee must include at least two external experts or at least 30% of the entire review committee.

Finally, DAXA has chosen to create internal guidelines for a virtual asset warning system for each exchange, which will allow it to swiftly notify investors of sudden movements in price, trading volume, or deposit amounts. It is anticipated that the advisory committee will meet by the end of next month to discuss the standard value and implementation date after developing a framework for internal standards.

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