This photo, taken June 15, 2023, shows signboards showing price movements of bitcoin and other virtual currencies on a local exchange. (Yonhap)
SEOUL, July 4 (Korea Bizwire) — An alert system that notifies users of abnormalities in cryptocurrency trading was launched in South Korea, an alliance of local crypto exchanges said Tuesday.
The system sends out messages when there is a sudden rise and fall in the price of coins in the past 24 hours, a steep increase in the trading volume within the past 10 days, a spike in the deposit volume within the past 10 days, and bigger differences between actual coin prices and the coin market cap, as well as to accounts with heavy trading, the Digital Asset eXchange Association (DAXA) said.
DAXA is an alliance of South Korea’s major cryptocurrency exchanges: Upbit, Bithumb, Coinone, Korbit and Gopax.
The system has been devised to protect users by easing the information asymmetry, DAXA Vice Chairman Kim Jae-jin said.
The move came after DAXA created a standard code of conduct for virtual asset operators last month in response to public criticism over allegations of irregularities in some exchanges’ enlistment of crypto items.
Last week, the National Assembly passed legislation aimed at protecting crypto investors, the first of its kind in South Korea.
Under the new law, those who unfairly trade virtual assets can be sentenced to prison terms and fined. Acts of unfair trading include the use of undisclosed information, market price manipulation and illegal transactions.
The Financial Services Commission has the authority to oversee and inspect crypto operators.
(Yonhap)
