South Korea Mulls New Statutory Crypto Body To Take Over DAXA Functions - Bitcoin World

South Korea’s financial authorities are reportedly exploring the creation of a new statutory body dedicated to cryptocurrency oversight. Such an entity would take over the self-regulatory functions currently performed by the Digital Asset Exchange Alliance (DAXA), the industry-led coalition of major Korean exchanges. DAXA has historically handled listing reviews, delisting standards, and joint compliance measures among its members. A move to institutionalize these duties would shift responsibility from private self-governance to formal, state-backed supervision.

The market relevance lies in the potential tightening of compliance standards. A statutory body may enforce more uniform and legally binding rules across all exchanges, including smaller platforms, and could streamline communication between regulators and the industry. This could increase investor protection and enhance overall market transparency, though it may also raise operational costs for exchanges.

What to watch is the legislative process in the National Assembly, the specific powers granted to the new body, and whether it retains DAXA’s cooperative approach or adopts a more prescriptive regulatory style. Any changes will likely shape how Korean firms and international partners navigate the local crypto market.