South Korean Crypto Exchanges Unveil Market Volatility Monitoring System
A group of South Korea’s largest cryptocurrency exchanges has launched a system that alerts users to abnormal changes in cryptocurrencies prices. The alliance, called the Digital Asset Stock exchange Association (DAXA) and comprising Upbit, Bithumb, Coinone, Korbit and Gopax, said the new system will prevent information asymmetry.
DAXA explained that the system sends notifications to users when cryptocurrencies prices suddenly rise or fall within a day. In addition, the system notifies users when there is a sharp increase or decrease in daily trading volumes or deposits, The Korean Times reported.
The latest development follows DAXA’s announcement of ethical standards for its members last month. The Standards: The DAXA Internal Control Standards and the Code of Ethical Conduct for Virtual Asset Operators outline how virtual asset service providers should conduct their business.
One of the guidelines set out in the standards is that cryptocurrency exchanges that are members of the alliance must involve an outside legal expert when listing or deleting cryptocurrencies. In addition, it is stated that the legal expert must not have a conflict of interest.
In addition, the South Korean National Assembly recently passed legislation that would allow the creation of a legal framework for the regulation of cryptocurrencies. The new law stipulates that digital asset service providers must segregate user funds from their own money and insure customer deposits.
In addition, the Virtual Asset User Protection Act, which will be implemented this year, states that the VASPs must keep crypto reserves in cold wallets and keep track of all transactions. In addition, the legislation requires the Korean Financial Services Commission to inspect VASPs, and the Bank of Korea to monitor the data processed by the service providers.
South Korea regulates crypto
Financial tycoons reported in April that South Korean lawmakers were pushing for the regulation of digital assets to protect investors from fraudulent activity in the sector. The regulations, which cover virtual assets, cryptocurrency exchanges and the financial technology sector, are in response to the growing adoption of digital assets in the country.
South Korea has been working to prevent fraud in the digital asset sector since the collapse of Terraform Labs and its cryptocurrency projects, TerraUSD and Terra LUNA, which have cost investors billions in losses. The founder of the projects, Do Kwon, is currently serving a prison sentence in Montenegro.
A group of South Korea’s largest cryptocurrency exchanges has launched a system that alerts users to abnormal changes in cryptocurrencies prices. The alliance, called the Digital Asset Stock exchange Association (DAXA) and comprising Upbit, Bithumb, Coinone, Korbit and Gopax, said the new system will prevent information asymmetry.
DAXA explained that the system sends notifications to users when cryptocurrencies prices suddenly rise or fall within a day. In addition, the system notifies users when there is a sharp increase or decrease in daily trading volumes or deposits, The Korean Times reported.
The latest development follows DAXA’s announcement of ethical standards for its members last month. The Standards: The DAXA Internal Control Standards and the Code of Ethical Conduct for Virtual Asset Operators outline how virtual asset service providers should conduct their business.
One of the guidelines set out in the standards is that cryptocurrency exchanges that are members of the alliance must involve an outside legal expert when listing or deleting cryptocurrencies. In addition, it is stated that the legal expert must not have a conflict of interest.
In addition, the South Korean National Assembly recently passed legislation that would allow the creation of a legal framework for the regulation of cryptocurrencies. The new law stipulates that digital asset service providers must segregate user funds from their own money and insure customer deposits.
In addition, the Virtual Asset User Protection Act, which will be implemented this year, states that the VASPs must keep crypto reserves in cold wallets and keep track of all transactions. In addition, the legislation requires the Korean Financial Services Commission to inspect VASPs, and the Bank of Korea to monitor the data processed by the service providers.
South Korea regulates crypto
Financial tycoons reported in April that South Korean lawmakers were pushing for the regulation of digital assets to protect investors from fraudulent activity in the sector. The regulations, which cover virtual assets, cryptocurrency exchanges and the financial technology sector, are in response to the growing adoption of digital assets in the country.
South Korea has been working to prevent fraud in the digital asset sector since the collapse of Terraform Labs and its cryptocurrency projects, TerraUSD and Terra LUNA, which have cost investors billions in losses. The founder of the projects, Do Kwon, is currently serving a prison sentence in Montenegro.