South Korea’s Digital Asset Exchange Alliance has launched a new API key standard for local crypto exchanges. The move targets improper distribution of API keys and potential market abuse.
Summary
- DAXA will now force suspicious API keys to expire after warnings, monitoring, and user testing.
- FSS said API-based trading accounts for about 30% of South Korea’s domestic crypto market revenue.
- Upbit, Bithumb, Coinone, Korbit, and Gopax will now add strict monitoring and IP authorization systems.
The legislation comes as regulators are watching automated crypto trading more closely. The Financial Supervisory Service said that API-based trading now accounts for about 30% of domestic crypto revenue.
DAXA targets shared with API keys
DAXA said the new policy will apply if traders suspect improper API key lending. The group said such keys could give external tools access to check prices, balances, orders, deposits, and withdrawals.
Asia Business Daily reported that some users have borrowed or shared API keys with others. Those keys are then linked to unfair trading practices, including possible price manipulation.
Under the new standard, exchanges can increase vigilance after suspicious activity. They can also send alerts, require identity checks, and force API keys to expire.
Kim Jae-jin, vice chairman of DAXA, said the group will “quickly respond to new and emerging threats.” He said the protection of users remains the main value behind the new measures.
FSS warning raises pressure on trading
The FSS warning adds more pressure to the local trade. The regulator said that automated trading can create false volume and distort token prices.
Reports have identified small duplicate trades, fraudulent orders, and consolidated activity on multiple accounts. These actions can make the token look more active than it actually is.
The administrator also warned users about the high frequency trading code shared online. It urged investors to avoid rushing into sudden price increases without clear reasons.
DAXA’s new policy fits that warning. It gives exchanges a direct way to act if access to an account appears suspicious.
Testing Upbit and Bithumb’s strong API faces
The rules apply to DAXA member exchanges, including Upbit, Bithumb, Coinone, Korbit, and Gopax. These platforms dominate South Korea’s regulated crypto exchange market.
Member exchanges will add IP authorization systems. This means that API keys can only work on IP addresses that users register in advance.
The system can make shared keys difficult to use. It can also help exchange access to the site from non-standard locations or external trading systems.
The law does not prohibit API trading. Instead it targets situations where users give away keys or allow others to trade on their exchange accounts.
Korea is increasing surveillance of crypto exchanges
The API law adds to a broader push across South Korea’s crypto market. Regulators have already moved to tighten currency exchange checks after previous regulatory failures.
As previously reported by crypto.news, South Korea ordered the local exchange to add five-minute balance checks, automatic trading stops, and monthly audits after the Bithumb mishap.
Separate filings also showed DAXA’s warning that the proposed AML rule could raise suspicious transaction reports from 63,000 to more than 5.4 million.
The latest API standard shows the same direction. Korean regulators and exchanges are moving toward faster regulation, closer monitoring, and early action against market abuse.
