Korea's five crypto exchanges launch first alliance amid Luna fiasco

The Korea Times

The Korea Times

Finance

Sun, October 1, 2023 | 01:22

Cryptocurrency

Korea's five crypto exchanges launch first alliance amid Luna fiasco

Posted : 2022-06-22 15:52

Updated : 2022-07-03 16:24

The leaders of Korea's major crypto exchanges pose after launching their joint consultative body at the headquarters of Coinone in Seoul, Wednesday. From left are Bithumb CEO Lee Jae-won, Coinone CEO Cha Myung-hun, Gopax CEO Lee Jun-hang, Korbit Chief Strategy Officer Kim Jae-hong and Dunamu CEO Lee Sirgoo. Courtesy of Bithumb

By Lee Min-hyung

Korea's top five cryptocurrency exchanges have launched their first joint consultative body in response to growing calls for preemptive measures to protect customers from possible crypto-related fiascos.

The so-called Digital Asset eXchange Alliance (DAXA), consisting of Upbit, Bithumb, Coinone, Korbit and Gopax, was launched on Wednesday aiming to drive the industry's sustainable growth here and to come up with measures to enhance customer protection, according to the five exchanges.

This move was the first follow-up measure jointly taken by the exchanges after the National Assembly and the government held an emergency conference earlier this month to discuss countermeasures against a possible recurrence of the recent crypto debacle surrounding the Terra and Luna coins.

The sudden collapse of the two cryptocurrencies left a number of investors here and abroad in a panic back in mid-May. Authorities have since shifted part of the responsibility to the exchanges, urging them to come up with specific measures to handle such crises jointly.

Under a joint statement after the launch of the DAXA, the exchanges pledged to join hands to establish toughened rules from the beginning to the end of crypto trading. They also promised to collaborate with the Assembly before the enactment of a digital asset basic law here.

Lee Sirgoo, the CEO of Dunamu, which operates the nation's dominant crypto exchange, Upbit, will serve as the first chair of the alliance.

"The five exchanges have set up the autonomous consultative body for the healthy growth of the crypto industry and investors' protection," Lee said. "We are going to invite other exchanges to join the alliance."

Each exchange in the alliance will also have a different role. For instance, Coinone will focus on supporting crypto trading, and Korbit will focus on monitoring the market. Gopax will also take on the role of crypto education.

The alliance will also keep listening to the voices of outside experts, while at the same time enhancing communication with those concerned, including the government and the National Assembly.

mhlee@koreatimes.co.kr