News Heat Trend
Project Overview
Korea Digital Asset(KODA ) provides one-stop digital asset custody services for corporate and institutional investors. KODA is jointly set up by major Korean bank KB Bank, crypto venture capital firm Hashed and blockchain tech firm Haechi Labs
South Korea Tightens Control Over Crypto Exchange APIs; DAXA Requires Blocking of Suspicious Shared Keys
The Korea Digital Asset Exchange Alliance (DAXA) has introduced new compliance standards requiring local cryptocurrency exchanges to invalidate API keys suspected of being improperly shared by users, thereby strengthening oversight of automated trading. The Financial Supervisory Service (FSS) stated that automated trading currently accounts for approximately 30% of trading volume in Korea’s cryptocurrency market. Under the new rules, exchanges including Upbit, Bithumb, Coinone, Korbit, and Gopax will enhance API monitoring, issue warnings upon detecting suspicious sharing behavior, require users to re-authenticate, and implement an IP allowlist mechanism to restrict API access to authorized addresses only.
South Korea’s virtual asset industry objects to the revised draft of the Special Financial Information Act, warning that mandatory reporting requirements will cause operational chaos
According to Yonhap News Agency, the Korea Digital Asset Exchange Alliance (DAXA) submitted its official comments on the draft Enforcement Decree of the Act on Reporting and Using Specified Financial Transaction Information (“Special Financial Information Act”) to the National Participation Legislative Center of the Ministry of Government Legislation on April 29. The comments reflect the collective views of 27 Virtual Asset Service Providers (VASPs), including the five major exchanges Upbit and Bithumb. DAXA raised objections to two core provisions in the draft revision: First, the proposal to categorize all virtual asset transactions exceeding KRW 10 million as suspicious transactions—mandating compulsory reporting to the Financial Intelligence Unit (FIU). This change is projected to increase the annual number of suspicious transaction reports filed by the five major exchanges from 63,000 to 5.445 million, an 85-fold surge. Second, the draft introduces a new obligation to verify the accuracy of customer information, going beyond existing customer identification requirements—and exceeding the scope of authority granted under the higher-level law. Moreover, penalties for noncompliance are significantly harsher than those applied to other financial sectors. While DAXA supports the legislative intent behind the revision—to strengthen the anti-money laundering (AML) framework—it contends that certain provisions overstep the statutory delegation of authority and impose discriminatory treatment on the virtual asset industry. The draft revision’s public consultation period ends on May 11, with formal adoption expected in July. The relevant provisions will be implemented in phases between August 2026 and 2027.
Upbit and Bithumb to Delist DRIFT
According to an official announcement, Upbit and Bithumb have stated that member companies of the Korea Digital Asset Exchange Association (DAXA) plan to terminate trading support for DRIFT. The reason for terminating DRIFT trading is that the foundation’s explanatory materials alone are insufficient to alleviate concerns that led to the project’s inclusion on the “Trading Caution List.” Furthermore, after a comprehensive review of all aspects related to the project’s progress, it was determined that the project fails to meet the criteria required to maintain trading support. DRIFT trading (buy/sell) will end on June 1, 2026, at 16:00 KST. Support for DRIFT withdrawals will be terminated on July 1, 2026, at 16:00 KST.
Related news
South Korea Tightens Control Over Crypto Exchange APIs; DAXA Requires Blocking of Suspicious Shared Keys
The Korea Digital Asset Exchange Alliance (DAXA) has introduced new compliance standards requiring local cryptocurrency exchanges to invalidate API keys suspected of being improperly shared by users, thereby strengthening oversight of automated trading. The Financial Supervisory Service (FSS) stated that automated trading currently accounts for approximately 30% of trading volume in Korea’s cryptocurrency market. Under the new rules, exchanges including Upbit, Bithumb, Coinone, Korbit, and Gopax will enhance API monitoring, issue warnings upon detecting suspicious sharing behavior, require users to re-authenticate, and implement an IP allowlist mechanism to restrict API access to authorized addresses only.
South Korea’s virtual asset industry objects to the revised draft of the Special Financial Information Act, warning that mandatory reporting requirements will cause operational chaos
According to Yonhap News Agency, the Korea Digital Asset Exchange Alliance (DAXA) submitted its official comments on the draft Enforcement Decree of the Act on Reporting and Using Specified Financial Transaction Information (“Special Financial Information Act”) to the National Participation Legislative Center of the Ministry of Government Legislation on April 29. The comments reflect the collective views of 27 Virtual Asset Service Providers (VASPs), including the five major exchanges Upbit and Bithumb. DAXA raised objections to two core provisions in the draft revision: First, the proposal to categorize all virtual asset transactions exceeding KRW 10 million as suspicious transactions—mandating compulsory reporting to the Financial Intelligence Unit (FIU). This change is projected to increase the annual number of suspicious transaction reports filed by the five major exchanges from 63,000 to 5.445 million, an 85-fold surge. Second, the draft introduces a new obligation to verify the accuracy of customer information, going beyond existing customer identification requirements—and exceeding the scope of authority granted under the higher-level law. Moreover, penalties for noncompliance are significantly harsher than those applied to other financial sectors. While DAXA supports the legislative intent behind the revision—to strengthen the anti-money laundering (AML) framework—it contends that certain provisions overstep the statutory delegation of authority and impose discriminatory treatment on the virtual asset industry. The draft revision’s public consultation period ends on May 11, with formal adoption expected in July. The relevant provisions will be implemented in phases between August 2026 and 2027.
Upbit and Bithumb to Delist DRIFT
According to an official announcement, Upbit and Bithumb have stated that member companies of the Korea Digital Asset Exchange Association (DAXA) plan to terminate trading support for DRIFT. The reason for terminating DRIFT trading is that the foundation’s explanatory materials alone are insufficient to alleviate concerns that led to the project’s inclusion on the “Trading Caution List.” Furthermore, after a comprehensive review of all aspects related to the project’s progress, it was determined that the project fails to meet the criteria required to maintain trading support. DRIFT trading (buy/sell) will end on June 1, 2026, at 16:00 KST. Support for DRIFT withdrawals will be terminated on July 1, 2026, at 16:00 KST.