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

South Korean financial authorities are reviewing plans to establish a new incorporated association dedicated to virtual assets, potentially absorbing key functions from the Digital Asset eXchange Alliance (DAXA). The move, reported by Newsis, signals a regulatory shift as the country prepares for the second phase of its Digital Asset Basic Act.

Regulatory groundwork for a new crypto oversight body

According to Newsis, the plan involves creating a separate preparatory committee to launch the new entity. An official indicated that DAXA currently operates as an industry-level group without legal standing, prompting authorities to consider forming a new incorporated association rather than restructuring the existing alliance.

DAXA, established in 2023, is a self-regulatory body comprising major South Korean crypto exchanges, including Upbit, Bithumb, Coinone, Korbit, and Gopax. It has been instrumental in setting listing and delisting guidelines, but its lack of statutory authority has limited its enforcement power.

Implications for the Digital Asset Basic Act phase two

The proposed statutory body would likely gain legal recognition and clearer enforcement capabilities. This aligns with the government’s broader efforts to strengthen investor protections and market integrity as the second phase of the Digital Asset Basic Act moves through the National Assembly.