South Korean Crypto Exchanges Unveil System for Checking Market Volatility

<p>A group of South Korea’s major cryptocurrency exchanges
has launched a system that alerts users of abnormal changes in the prices of
cryptocurrencies. The alliance, dubbed the Digital Asset <a href="https://www.financemagnates.com/terms/e/exchange/">Exchange</a> Association
(DAXA) and comprising Upbit, Bithumb, Coinone, Korbit, and Gopax, said the new
system will prevent information asymmetry.</p><p>DAXA explained that the
system sends notifications to users when the prices of cryptocurrencies
suddenly rise or fall within a day. Additionally, the system notifies users
whenever there is a sharp increase or decrease in the daily trading volumes or
deposits, The Korean Times reported.</p><p>DAXA’s Standards for
Exchanges</p><p>The latest development follows DAXA’s announcement of the 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 must conduct their business.</p><p>Among the guidelines
stipulated in the standards is that cryptocurrency exchanges
that are members of the alliance must involve a third-party legal expert when
listing or delisting cryptocurrencies. Additionally, it states that the legal expert must not
have a conflict of interest.</p><p>Besides that, the South
Korean National Assembly recently passed legislation that would allow for the
creation of a legal framework for the regulation of cryptocurrencies. The new
law provides that digital asset service providers must separate user funds from
their own and must insure customer deposits.</p><p>Additionally, the
Virtual Asset User Protection Act, which will be implemented year, states that
the VASPs must keep crypto reserves in cold wallets and maintain records of all
the transactions. Moreover, the legislation mandates the Korean Financial
Services Commission to inspect VASPs, and the Bank of Korea to supervise the
data handled by the service providers.</p><p>South Korea Regulates
Crypto</p><p><a href="https://www.financemagnates.com/" target="_blank" rel="follow">Finance Magnates</a> reported in April that South Korean lawmakers were
pushing for the <a href="https://www.financemagnates.com/terms/r/regulation/">regulation</a> of digital assets <a href="https://www.financemagnates.com/cryptocurrency/south-koreas-evolving-regulatory-landscape-for-cryptocurrencies-what-to-expect/" target="_blank" rel="follow">to protect investors</a> from
fraudulent activities in the sector. The regulations, which touch on virtual
assets, cryptocurrency exchanges, and the financial technology sector, are in
response to the growing adoption of digital assets in the country.</p><p>South Korea is working
to prevent fraud in the digital asset sector since the <a href="https://www.financemagnates.com/cryptocurrency/news/south-korea-issues-arrest-warrant-against-terra-co-founder-do-kwon/" target="_blank" rel="follow">collapse
of Terraform Labs</a> and
its cryptocurrency projects, TerraUSD and Terra LUNA, which cost investors billions
of losses. The Founder of the projects, Do Kwon, is currently <a href="https://www.financemagnates.com/cryptocurrency/terraform-labs-do-kwon-sentenced-to-4-month-in-jail-over-document-forgery/" target="_blank" rel="follow">serving
a jail term</a> in
Montenegro.</p>

This article was written by Jared Kirui at www.financemagnates.com.