Dacsa, Common Guidelines for Transaction Support Review Released

The Digital Asset Exchange Joint Council (DAXA), composed of South Korea's top five virtual asset exchanges?Gopax, Bithumb, Upbit, Korbit, and Coinone?announced key items of the common guidelines for trading support review on the 22nd to enhance market transparency and protect investors.

Last September, DAXA announced the introduction of common guidelines for trading support review jointly by the five member companies and has been implementing them since October. So far, each detailed evaluation item has been reviewed through simulations based on past cases to prevent recurrence of problematic situations, and the items have been continuously supplemented according to the results. Going forward, DAXA plans to continue efforts to advance the common guidelines for trading support review in line with changing market conditions.

The key items of the common guidelines for trading support review disclosed this time include ▲ inherent risks of virtual asset structures ▲ opacity due to de-identification ▲ securities characteristics of virtual assets ▲ potential misuse of virtual assets for money laundering, among others.

Regarding the resumption of trading support for virtual assets, it was made mandatory to consider cases where trading support was terminated due to crisis situations through joint response and where either a certain period has not passed since the termination date or the reason for termination has not been resolved even after a certain period has passed. The resolution of the reason for termination means that the cause of the termination has clearly disappeared. Member companies wishing to resume trading support must provide the basis for their judgment as materials understandable to general investors simultaneously with the announcement of the trading support resumption.

Meanwhile, in addition to maintaining at least two external experts or a minimum participation rate of 30% during trading support reviews, DAXA member companies have strengthened the standard to require the participation of at least one legal risk assessment committee member starting from the 1st of next month. The legal risk assessment committee member must be a legal expert or compliance officer capable of assessing the legal risks of the virtual asset under review, and if there is a conflict of interest with the issuer of the virtual asset under review, they cannot participate in the review.

Furthermore, DAXA is also working hard to establish common criteria for terminating trading support. The draft for the common criteria for termination has been completed, and continuous improvements will be made. The common criteria for termination reportedly include cases where the issuing entity disrupts the market with the intent to unfairly influence the domestic financial market or intentionally and repeatedly disseminates clear false information.

DAXA member companies stated, "The launch of DAXA began with self-regulation, and the commitment of member companies remains strong," adding, "If any gaps are found during the process of building self-regulation, the five member companies will work together to supplement them and continue efforts to create a stable market environment for investor protection."