South Korean Lawmaker: Major Crypto Exchanges Fail in Their Obligations
According to a South Korean lawmaker, the top cryptocurrency exchanges in the country are neglecting their responsibilities to protect investors. The comments were made by Min Byeong-deok, a member of the National Assembly’s Political Affairs Committee and a member of the main opposition Democratic Party. Min specifically targeted the five exchanges that make up the Digital Asset Exchange Association (DAXA), a self-regulating body that oversees token listing and desisting policies. He criticized the exchanges for employing unprincipled measures in their approach to cryptocurrency. DAXA’s reputation has been damaged in recent months due to apparent divisions between exchanges’ policies. For example, while DAXA voted to delist WEMIX, a token launched by a local gaming firm, all but one of its members have since relisted the token without formal policy changes. The lawmaker also highlighted confusion in DAXA policies regarding an altcoin named Creditcoin (CTC), which was marketed as an overseas project but is predominantly traded domestically. The lack of consistency and responsibility from major cryptocurrency exchanges has led to investor damages, according to Min. He concluded that regulators need to strengthen their efforts to enforce the Virtual Asset User Protection Act, which will come into force in July and require exchanges to protect customers from scams and fraudulent activities.