South Korea’s 10 crypto exchanges have jointly launched the Virtual Asset eXchange Association (VXA). The association will enhance the virtual asset ecosystem in the country while emphasizing fairness, trust, consumer choice and investor protection. The association will mainly work to solve the problem of monopoly in the South Korea crypto market.
South Korean Crypto Exchanges Announce Virtual Asset Exchange Association
10 crypto exchanges in South Korea have established the Virtual asset eXchange Association (VXA), local media News1 reported on January 19.
Leaders of crypto exchanges Huobi Korea, FlatTyx, Flybit, BTX, ProBit, Poblegate, AproBit, Oasis, GDAC, and B-bloc created the VXA to seek mutual cooperation business deals.
The VXA Council will help develop a virtual asset ecosystem in the country based on fairness and trust. The VXA will also work to improve consumer choice and investor protection.
During the inauguration ceremony of the VXA Council, crypto exchange leaders agreed that the monopoly in the South Korean crypto market is the biggest problem right now. Also, the cause is the issuance of bank accounts limited to real name. Upbit, Bithumb, Coinone, Korbit, and Gopax are the top five crypto exchanges in South Korea.
“The abnormal monopolistic structure of the virtual asset market is not the result of a fair market order and rational consumer choices, but rather the product of typical policy failures caused by rapid administration and unfair legislation that leaves practically the licensing process to banks.”
In June of last year, five major crypto exchanges Up bit, Bithumb, Coinone, Korbit and Gopax created the Digital Asset Exchange Association (DAXA) to monitor and prevent another situation like the Terra-LUNA crisis. South Korean investors are mainly affected by the crisis.
Binance plans to re-enter the South Korean market
South Korea is one of the leading crypto nations experiencing massive growth in NFT, metaverse, and blockchain areas. However, the government has tightened surveillance of the crypto market after the Terra-LUNA crisis.
Meanwhile, Binance is looking to re-enter the South Korean market with the acquisition of Gopax. However, the deal is impacted due to Genesis contagion reaching Gopax. Crypto exchange Gopax must reimburse approximately $47 million to clients of its wealth management product GoFi, which is impacted due to withdrawal issues at Genesis.
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