Consortium of 5 Major Virtual Asset Exchanges to Introduce Common Listing Review Guidelines

Autonomous Improvement Plan for Investor Protection Established... Full Implementation from Next Month 10
Number and Ratio of External Experts Participating in Listing Review Also Decided
Price Surge and Drop Alerts... "Continuous Consultation for Investor Protection"

[Asia Economy Reporter Myung-Hwan Lee] Starting from the 10th of next month, a common guideline for the review of virtual asset trading support (listing) will be introduced across exchanges. A market surveillance system that issues alerts when virtual asset prices fluctuate significantly or trading volumes surge will also be established.

The 'Digital Asset eXchange Alliance (DAXA),' a consultative body composed of Korea's five major virtual asset exchanges (Gopax, Bithumb, Upbit, Korbit, Coinone), announced this on the 30th while revealing the 'Current Status of Joint Voluntary Improvement Measures for Virtual Asset Operators.'

The common guideline for trading support review, scheduled to be fully implemented on the 10th of next month, consists of evaluations of inherent risk, technical risk, and business risk, with detailed items to be assessed. While the five exchanges independently decide on trading support based on their own procedures and standards during new trading support reviews, they must mandatorily conduct item evaluations according to the common guideline during this process.

Additionally, DAXA is discussing risk indicators and monitoring methods by virtual asset type. Priority discussions have been held on selecting risk indicators and monitoring methods for stablecoins related to the Luna incident and coins issued by overseas trading operators. According to DAXA, once the indicator development is completed and the agreed risk indicators are monitored, joint responses such as designating watch-listed items or deciding to terminate trading support within a certain timeframe will become possible.

DAXA has also decided on the number and ratio of external experts participating in the trading support review. Accordingly, from October 1st, when conducting new trading support reviews, the five exchanges must include at least two external experts or at least 30% of external experts in their respective trading support review committees. Although all five exchanges already involve external experts, this is the first time that external expert participation has been established as a common review requirement with minimum participation criteria.

A market surveillance system for investor protection has also been established. DAXA will introduce an alert system that quickly notifies investors when rapid price fluctuations, surges in trading volume, or deposit volume spikes occur, by creating 'Internal Criteria for Virtual Asset Alerts' for each exchange. The model for internal criteria has already been established, and consultations on threshold values and implementation dates will be completed by the end of October after review by the advisory committee.

Furthermore, DAXA has agreed to define a crisis situation as "cases where investor caution is urged due to unusual occurrences beyond simple price fluctuations caused by market conditions."

Virtual asset trading advertisements will include risk warning statements. Starting November 1st, new advertisements and events conducted by DAXA member companies will include warning phrases such as "Virtual assets are high-risk products that may result in the loss of all or part of the invested capital."

Measures to strengthen investment risk and crime prevention education for general investors will also be implemented. DAXA has finalized plans to produce educational video content on this topic and intends to distribute it starting around January next year.

Lee Seok-woo, Chairman of DAXA, stated, "Each exchange is doing its best to establish implementation plans through discussions by subcommittees and to implement them quickly," adding, "We will continue to unite our efforts to protect investors."

This content was produced with the assistance of AI translation services.