South Korea Mulls New Crypto Body as Part of Regulatory Shift
South Korea is considering the establishment of a new statutory crypto body to oversee virtual assets, potentially absorbing key functions from the Digital Asset eXchange Alliance (DAXA). The move reflects the country's efforts to strengthen investor protections and market integrity as it prepares for the second phase of its Digital Asset Basic Act.
DAXA is currently an industry-level group without legal standing, which has limited its enforcement power. Authorities are looking to create a separate preparatory committee to launch the new entity, giving it statutory authority and clearer enforcement capabilities.
The proposed association would likely centralize oversight and reduce fragmentation in the self-regulatory landscape. Exchanges may face clearer compliance requirements, while investors could benefit from stronger safeguards.