South Korea’s Digital Asset Exchange Alliance has introduced a major new application programming interface (API) standard for local cryptocurrency exchanges. This step targets improper API key sharing and potential market abuse.
summary
- DAXA will now force suspicious API keys to expire after warnings, monitoring and user checks.
- The FSS said API-based trading accounts for about 30% of South Korea’s domestic cryptocurrency market turnover.
- Upbit, Bithumb, Coinone, Korbit, and Gopax will now add stricter monitoring and IP whitelisting systems.
The rule comes as regulators closely monitor automated cryptocurrency trading. The Financial Supervisory Service said that API-based trading now makes up about 30% of domestic cryptocurrency trading volume.
DAXA targets shared API keys
Daxa said the new policy will be implemented when exchanges suspect inappropriate API key lending. Such keys could give external tools access to price checks, balances, orders, deposits and withdrawals, the group said.
Asia Business Daily I mentioned That some users have loaned or shared API keys with others. These keys were then linked to unfair trading practices, including possible price manipulation.
Under the new standard, exchanges can increase monitoring after any suspicious activity. They can also send warnings, require double identity verification, and force API keys to expire.
Kim Jae-jin, executive vice president of Daxa, said the group “will respond quickly to new and emerging threats.” He said user protection remains the main value behind the new measures.
FSS warning increases pressure on exchanges
The FSS warning adds more pressure on local exchanges. The regulator said automated trading could create false volume and distort token prices.
Reports indicated frequent small trades, fraudulent orders, and coordinated activity across many accounts. These actions can make the icon appear more active than it actually is.
The regulatory body also warned users against sharing high-frequency trading codes online. She urged investors to avoid chasing sudden price increases without clear reasons.
DAXA’s new policy fits this warning. It gives exchanges a straightforward way to act when account access appears suspicious.
Upbit and Bithumb face more stringent API checks
The rules apply to DAXA member exchanges, including Upbit, Bithumb, and… One coinCorbett and Jobax. These platforms dominate the regulated cryptocurrency exchange market in South Korea.
Member exchanges will add IP address whitelisting systems. This means that API keys can only work through IP addresses that users have previously registered.
The system can make using shared keys more difficult. It can also help exchanges gain instant access from unusual locations or external trading systems.
The rule does not prohibit API trading. Instead, it targets cases where users hand over keys or allow others to trade through their exchange accounts.
Korea expands oversight of cryptocurrency exchanges
The API rule adds to a broader push across the South Korean cryptocurrency market. Regulators have already moved to tighten exchange controls after previous oversight failures.
Ditto I mentioned By crypto.news South Korea has ordered local exchanges to add five-minute balance checks, automatic trading halts, and monthly audits after a major Bithumb bug.
Separate coverage also Show DAXA has warned that the proposed anti-money laundering rule could raise suspicious transaction reports from 63,000 to more than 5.4 million.
The latest API standard shows the same trend. Korean regulators and stock exchanges are moving toward faster controls, more precise monitoring, and early action against market abuse.
