[Bitcoin Now] DAXA Establishes Advertising and Promotion Standards for Virtual Asset Service Providers... "Mandatory Fee Disclosure"

The Digital Asset Exchange Alliance (DAXA) announced on November 13 that it will implement the revised 'Best Practice Guidelines for Advertising and Promotional Activities of Virtual Asset Service Providers.' The core of this revision is to establish internal controls over all advertising and promotional activities of virtual asset service providers, and to strengthen user protection by enabling comparative disclosure of fee information.

Yonhap News Agency

In July, DAXA formed a task force to revise the existing 'DAXA Standard Advertising Regulations' with the support of supervisory authorities. The scope of self-regulation, which was previously limited to advertising activities, has been expanded to cover all advertising and promotional activities, and the requirements that businesses must comply with have been specified in detail.

Specifically, the new provisions include: ▲ specifying mandatory disclosures in advertisements, ▲ establishing advertising suitability standards, ▲ checking the appropriateness of advertising materials, ▲ retaining records of advertising reviews and results, ▲ prohibiting compensation for losses except for justifiable reasons, ▲ establishing internal controls and disclosure standards regarding the provision of financial benefits to users and others, and ▲ strengthening the disclosure of trading fee rates.

Under the revised guidelines, exchanges are required to establish standards for imposing fees on users and to disclose fee rate information. As a result, DAXA and the exchanges began disclosing fee rate information on their respective websites on September 22, prior to the implementation date, to enhance user convenience.

Kim Jaejin, Executive Vice Chairman of DAXA, stated, "This revision of the best practice guidelines is even more meaningful as it demonstrates the commitment of businesses to provide accurate information to the market, including fee rates. We will continue our efforts to establish a fair trading order in the virtual asset industry and to protect users."