South Korean Crypto Exchanges Introduce Volatility Monitoring System


A consortium of leading South Korean cryptocurrency exchanges, called the Digital Asset Exchange Association (DAXA), has unveiled a system to alert users about possible price fluctuations in the cryptocurrency market. The aim of this initiative is to help users make informed decisions and manage their investments more effectively.

The system sends out notifications when there is a significant surge or decline in the price of coins within the past 24 hours, a noticeable increase in trading volume over the past 10 days, a sharp spike in deposit volume within the past 10 days, discrepancies between actual coin prices and the coin market cap, or accounts carrying out heavy trading activities.

Furthermore, DAXA has also recently released ethical standards for their members. The standards, known as the DAXA Internal Control Standards and the Code of Ethical Conduct for Virtual Asset Operators, outline the guidelines that virtual asset service providers must follow in their businesses. This is intended to promote transparency, consumer protection, and integrity in the market.

In addition, the South Korean National Assembly has approved legislation to create a legal framework to regulate cryptocurrencies. Under this law, digital asset service providers (VASPs) are required to separate user funds from their own, provide insurance for customer deposits, and store crypto reserves in cold wallets. Moreover, the Bank of Korea will supervise the data handled by service providers and the Korean Financial Services Commission will inspect VASPs for compliance with the regulations.

The recent steps taken by the South Korean government and exchanges are designed to protect users and enhance the security of the cryptocurrency ecosystem.

Related articles

Recent articles