South Korea’s 10 crypto exchanges have jointly launched the Virtual asset eXchange Association (VXA). The association will improve the virtual asset ecosystem in the country while focusing on fairness, trust, consumer choice, and investor protection. The association will primarily work to resolve the monopoly problem in the South Korea’s crypto market.
South Korean Crypto Exchanges Announce Virtual Assets Exchange Association
10 crypto exchanges in South Korea have established the Virtual asset eXchange Association (VXA), reported local media News1 on January 19.
Executives of crypto exchanges Huobi Korea, FlatTyx, Flybit, BTX, ProBit, Poblegate, AproBit, Oasis, GDAC, and B-bloc established the VXA to seek business agreements for mutual cooperation.
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 exchanges’ executives agreed that monopoly in the South Korean crypto market is the biggest problem currently. Also, the cause is the issuance of limited real-name bank accounts. Upbit, Bithumb, Coinone, Korbit, and Gopax are the top five crypto exchanges in South Korea.
“Abnormal virtual asset market monopoly structure is not the result of a fair market order and rational choices of consumers, but rather a product of typical policy failures caused by expedient administration and unfair legislation that virtually leaves the permission process to banks.”
In June last year, five major crypto exchanges Upbit, Bithumb, Coinone, Korbit, and Gopax established the Digital Asset Exchange Association (DAXA) to monitor and prevent another situation like the Terra-LUNA crisis. South Korean investors are affected mainly by the crisis.
Binance Plans to Re-Enter the South Korean Market
South Korea is one of the top crypto nations witnessing massive growth in NFTs, metaverse, and blockchain areas. However, the government has increased oversight of the crypto market after the Terra-LUNA crisis.
Meanwhile, Binance looks 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 needs to repay about $47 million to customers of its wealth management product GoFi, which is impacted due to withdrawal issues at Genesis.
Also Read: Genesis To Likely File For Bankruptcy As Early As This Week