South Korean financial authorities are advancing a regulatory overhaul that could replace the Digital Asset eXchange Alliance’s self-regulatory functions with a new incorporated association holding statutory authority. According to local reports, officials are considering a separate preparatory committee to launch the entity rather than restructuring DAXA, which was established in 2023 and includes Upbit, Bithumb, Coinone, Korbit, and Gopax.
The proposed body would gain legal recognition and clearer enforcement powers as South Korea prepares for the second phase of its Digital Asset Basic Act. Phase one took effect in July 2024 with a focus on user protection and unfair trading practices; phase two is expected to address market structure, licensing, and corporate participation in digital asset markets.
In a separate but related enforcement action, DAXA referred four unregistered offshore cryptocurrency exchanges to police on Aug. 31, according to The Asia Business Daily. The exchanges allegedly continued serving South Korean users without registering with the Financial Services Commission, violating Article 7 of the country’s financial transaction information law. Their identities were not disclosed, but the referrals shift the matter from administrative oversight to criminal investigation.
The developments highlight a broader regulatory tightening in South Korea’s crypto market. Domestic exchanges may face clearer compliance requirements, while investors could gain stronger safeguards. However, the transition may create temporary uncertainty as DAXA’s functions are gradually absorbed and offshore platforms face enforcement risk.
