Korea’s DAXA Prohibits Relisting of Delisted Cryptos for a Year
The Digital Asset Exchange Alliance (DAXA) in Korea will prohibit the relisting of cryptocurrencies delisted from its member exchanges for a year, according to Korean media outlet Edaily.
DAXA’s arbitrary regulation
Some criticize this regulation, arbitrarily created by DAXA, which consists of five major Korean cryptocurrency exchanges (Upbit, Bithumb, Coinone, Korbit, and Gopax), as this rule poses a significant impact on crypto issuers and investors.
In fact, a blockchain industry insider said that when cryptos are designated by DAXA as a risky asset, their operators receive a notification from the group that relisting is possible after a year once delisted. So far, assets that have been delisted or designated as such are WEMIX, PCI, BASIC, SRM, and OMG.
Coinone’s relisting of WEMIX
DAXA added this stipulation, as it faced criticism for the absence of relisting regulations in its guidelines when Coinone, one of its members, exclusively relisted the WEMIX token. This raised doubts about the self-regulation of the industry because DAXA had decided the delisting of WEMIX on the grounds that the information on its circulation supply was unreliable.
Crypto enterprises are complaining about DAXA’s devising of strict penalties when delisting processes are not transparent. DAXA has stated that a consensus has been reached for the first draft and it will be continuously revised.
Stronger DAXA presence
The Korean crypto industry forecasts that this regulation will empower DAXA’s presence in the crypto scene, considering that its members are responsible for 98% of the domestic trading volume.
Experts note that DAXA needs to establish fairness and transparency in order for it to gain trust as a self-regulatory body. Park Yong-beom, Chairman of the Korea Society of Blockchain, said rules on listing and delisting have to be fair and transparent, and if market participants find them unconvincing, it would undermine the credibility and authority of the self-regulatory body.
In an interview with Economic Review, Former KB Kookmin Bank CEO Lee Kun-ho suggested that DAXA should prioritize market vitalization and ecosystem strengthening. He believes that instead of focusing on market management and supervision, DAXA should concentrate on enhancing investor protection.
