Wonhwa Market Exchange to Pilot Operation of Trading Support Review Guidelines Starting August

[Image source=Yonhap News]

[Asia Economy Reporter Lee Jung-yoon] Following the Terra·Luna incident, the five major cryptocurrency exchanges operating the Korean won market have drafted a transaction support review guideline as part of their self-regulation measures. These exchanges plan to pilot the guideline starting in August based on the draft.

On the 11th, at a meeting hosted by the People Power Party's Digital Asset Special Committee held at the National Assembly, Lee Jun-haeng, CEO of Gopax, announced this. The five major Korean won market exchanges?Upbit, Bithumb, Coinone, Korbit, and Gopax?launched the Digital Asset Exchange Joint Council (DAXA) in June following the Terra·Luna incident. Since then, to enhance investor protection and professionalism, they have divided and operated five sectors directly related to investor protection: transaction support, market surveillance, compliance monitoring, education, and governance.

In addition to the transaction support review guideline, these exchanges have completed defining five crisis situations and held practical discussions within the market surveillance division, and have activated a hotline. They are also preparing a draft alert system for price fluctuations and abnormal transactions by the end of this month, planning to finalize policies through consultations among divisions and exchanges.

Furthermore, the compliance monitoring division is preparing warning statements to raise awareness of investment risks when advertising virtual asset businesses and products. The education division is estimating production methods and costs for video content based on main themes such as investment precautions and various crime prevention. Meanwhile, the governance division plans to form an advisory committee composed of multiple external experts and hold an appointment ceremony.

The five major exchanges are establishing a secretariat to professionally handle and promote the council’s practical work, reviewing the setup of an offline office, budget-sharing criteria, and bylaws.

Additionally, 21 exchanges operating coin markets have also prepared joint guidelines. They announced a draft of joint guidelines last month on the 14th, which include regulations on listing, circulation, and final delisting of cryptocurrencies, and are currently collecting feedback.

These coin market exchanges have requested institutional improvements through proposals on current issues, such as the issuance of real-name bank accounts, and allowing virtual asset companies that have entered the institutional system to be treated as general companies. They also requested clarification of new securities guidelines, administrative measures beyond the law related to virtual assets, institutionalization or abolition of such measures, inclusion of coin market exchanges among virtual asset businesses for institutional and corporate investors, and participation of coin market exchanges in the Virtual Asset Risk Council operated by the Financial Supervisory Service.