{"id":123939,"date":"2025-04-24T15:20:55","date_gmt":"2025-04-24T15:20:55","guid":{"rendered":"https:\/\/teknomers.com\/en\/south-korean-exchanges-upbit-and-bithumb-halt-snx-deposits-following-daxa-alert\/"},"modified":"2025-04-24T15:20:55","modified_gmt":"2025-04-24T15:20:55","slug":"south-korean-exchanges-upbit-and-bithumb-halt-snx-deposits-following-daxa-alert","status":"publish","type":"post","link":"https:\/\/teknomers.com\/en\/south-korean-exchanges-upbit-and-bithumb-halt-snx-deposits-following-daxa-alert\/","title":{"rendered":"South Korean Exchanges Upbit and Bithumb Halt SNX Deposits Following DAXA Alert"},"content":{"rendered":"

What prompted South Korean exchanges Upbit and Bithumb to suspend SNX deposits?<\/strong> How does the Digital Asset Exchange Alliance (DAXA) influence investor behavior in South Korea?<\/strong> What are the implications of SNX being classified as an asset requiring investor caution?<\/strong> What concerns did Upbit raise regarding the stability of Synthetix’s stablecoin, sUSD?<\/strong> What measures is Synthetix considering to stabilize sUSD and encourage SNX staking?<\/strong><\/p>\n

Leading South Korean crypto exchanges Upbit and Bithumb have suspended deposits for Synthetix (SNX) following a cautionary alert issued by the Digital Asset Exchange Alliance (DAXA). DAXA, a self-regulatory body responsible for setting industry standards across South Korean exchanges, designated SNX as an asset requiring investor caution. Such a classification typically triggers enhanced scrutiny, with common responses including tagging assets with warnings, halting deposits, or suspending trading to protect investors from heightened volatility. <\/p>\n

In a note, Upbit announced it has placed a cautionary label on SNX and temporarily blocked token deposits. The exchange cited concerns over the recent depegging of Synthetix\u2019s stablecoin, sUSD, noting that SNX\u2014used as collateral for sUSD\u2014could expose investors to significant risks. Upbit further highlighted a perceived lack of clear use cases for SNX, stating it would conduct a comprehensive evaluation before deciding on a possible delisting. <\/p>\n

Bithumb followed suit, suspending SNX deposits and issuing a similar warning. However, the exchange indicated that restrictions could be lifted if underlying issues are resolved. Other major South Korean platforms, including Korbit and Coinone, also issued investor alerts, adding cautionary tags to SNX but stopping short of suspending deposits or trading. The heightened scrutiny comes after sUSD, Synthetix\u2019s stablecoin, fell sharply below its dollar peg. <\/p>\n

On April 10, sUSD dropped to $0.83\u2014the lowest level in five years\u2014before plunging further to $0.68 by April 18. SNX, the native token of the Synthetix protocol, has since declined by 26% over the past month. Synthetix founder Kain Warwick recently urged SNX stakers to adopt a new staking mechanism aimed at stabilizing sUSD, warning of potential penalties if participation remained low. The sUSD 420 Pool, introduced on April 18, offers stakers a share of 5 million SNX tokens over a 12-month period if they lock their sUSD in the pool for a full year. Despite these efforts, sUSD has only partially recovered, reaching $0.87 on April 24 but still failing to regain its peg. <\/p>\n

Depegs in the stablecoin space are not uncommon. USDC briefly lost its peg in March 2023 after Circle revealed $3.3 billion in reserves were stuck with the collapsed Silicon Valley Bank. Similarly, TrueUSD (TUSD) dropped below $1 earlier this year amid a wave of redemptions. Despite the challenges, the stablecoin sector has grown steadily, with total market capitalization surpassing $200 billion in 2025 and transaction volume hitting $27.6 trillion\u2014exceeding the combined annual volume of Visa and Mastercard. In March, Federal Reserve Chair Jerome Powell affirmed the central bank\u2019s support for developing a regulatory framework around stablecoins during a Senate hearing, noting the importance of protecting consumers and savers.<\/p>\n

South Korean Exchanges Upbit and Bithumb Suspend SNX Deposits After Warning from DAXA<\/h3>\n

In an unexpected turn of events within the cryptocurrency sphere, two of South Korea\u2019s largest digital asset exchanges, Upbit and Bithumb, have recently announced the suspension of deposits for Synthetix (SNX). This decision follows a formal warning issued by the Digital Asset Exchange Association (DAXA), a self-regulatory body established to ensure adherence to compliance and governance standards within the cryptocurrency market in South Korea.<\/p>\n

Background on DAXA\u2019s Warning<\/h4>\n

DAXA’s role in the South Korean crypto market is pivotal. Established to enhance the financial security of digital assets and provide a regulatory framework, DAXA sets forth guidelines for transparent operations, promoting fair trading practices while safeguarding investors. The recent warning regarding SNX hinges on concerns regarding the project\u2019s compliance status. Regulatory scrutiny comes in the wake of increasing global efforts to regulate cryptocurrencies more stringently and ensure that they meet requisite service standards.<\/p>\n

Synthetix is a decentralized protocol that allows users to mint and trade synthetic assets\u2014digital representations of real-world assets like stocks, commodities, and fiat currencies\u2014on the Ethereum blockchain. Despite its innovative approach and functionality, concerns have been raised about governance and compliance issues in recent months that could impact user safety and the market at large.<\/p>\n

The Decision to Suspend Deposits<\/h4>\n

Following DAXA’s alert, both Upbit and Bithumb swiftly moved to suspend SNX deposits, signaling their commitment to adhering to regulatory standards and protecting their users. This response reflects an understanding of the potential risks associated with non-compliance, which can lead to severe repercussions, including legal penalties and a loss of consumer trust.<\/p>\n

Upbit, one of the largest exchanges by volume in South Korea, informed its users through an official announcement. Bithumb, another major player in the market, echoed similar sentiments. Both platforms emphasized that, while trading would still be allowed, no new deposits of SNX would be processed until further notice. This suspension raises questions about how the exchanges will handle any existing SNX transactions and what it means for investors currently holding the asset.<\/p>\n

Impact on Investors and Market Sentiment<\/h4>\n

The suspension of SNX deposits creates a ripple effect that is likely to impact market sentiment. Cryptocurrency markets are inherently volatile, and news that affects liquidity or trust can lead to rapid fluctuations in prices. Investors who hold SNX may find themselves in a precarious position, as an inability to deposit could result in increased selling pressure on the asset. <\/p>\n

Moreover, suspending deposits for SNX could trigger broader concerns among investors about the regulatory landscape in South Korea. Cryptocurrencies that fall under DAXA’s scrutiny may face similar actions from exchanges, leading to broader implications for the trading of other digital assets as well. This may lead investors to reassess their portfolios and consider the regulatory risks associated with their holdings.<\/p>\n

Broader Regulatory Trends<\/h4>\n

The actions taken by Upbit and Bithumb underscore a broader regulatory trend in South Korea, where authorities are reinforcing oversight in a rapidly evolving digital asset space. After experiencing significant volatility and incidents of fraud, regulators are intensifying efforts to implement stricter regulations to protect consumers and ensure market stability. <\/p>\n

The Korean Financial Services Commission (FSC) has been proactive in this respect, working closely with DAXA to enhance compliance frameworks. This collaborative approach aims to foster a healthier market environment while promoting innovation within the crypto space. However, such measures can also create friction as they may deter new projects or innovations from entering the market due to fears of regulatory barriers.<\/p>\n

Moving Forward<\/h4>\n

As the SNX deposit suspension continues, both Upbit and Bithumb will need to navigate the complexities that arise from DAXA’s warning. Moving forward, these exchanges will likely reassess their listing policies and compliance measures, ensuring that they maintain the trust of their user base while adhering to the evolving regulatory landscape.<\/p>\n

For investors, it is essential to stay informed about developments regarding SNX, alongside monitoring the broader regulatory environment in South Korea. The situation reflects the dynamic and often unpredictable nature of cryptocurrency markets where compliance, governance, and innovation must find a balance.<\/p>\n

Conclusion<\/h3>\n

The suspension of SNX deposits by South Korean exchanges Upbit and Bithumb following DAXA’s warning casts a spotlight on the ongoing regulatory developments affecting the cryptocurrency landscape in South Korea. As exchanges adapt to these changes, investors must remain vigilant about market dynamics and potential risks associated with their digital assets. In an age where cryptocurrencies are gaining mainstream adoption, the need for effective regulation and compliance becomes more crucial than ever.<\/p>\n

South Korean cryptocurrency exchanges Upbit and Bithumb have halted deposits of the synthetic asset SNX (Synthetix Network Token) following a warning issued by the Digital Asset eXchange Association (DAXA). This move comes as part of DAXA’s ongoing efforts to ensure compliance and mitigate risks associated with certain digital assets. The suspension of deposits highlights the regulatory landscape’s impact on cryptocurrency trading, as exchanges must navigate compliance requirements while maintaining user trust and security. Users of these exchanges are advised to stay updated on any changes regarding the trading status of SNX and other affected cryptocurrencies.<\/p>\n

Tm-En-7<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

What prompted South Korean exchanges Upbit and Bithumb to suspend SNX deposits? How does the Digital Asset Exchange Alliance (DAXA) influence investor behavior in South Korea? What are the implications of SNX being classified as an asset requiring investor caution? What concerns did Upbit raise regarding the stability of Synthetix’s stablecoin, sUSD? What measures is […]<\/p>\n","protected":false},"author":1,"featured_media":108984,"comment_status":"","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[23832],"tags":[],"class_list":["post-123939","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-finance"],"_links":{"self":[{"href":"https:\/\/teknomers.com\/en\/wp-json\/wp\/v2\/posts\/123939","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/teknomers.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/teknomers.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/teknomers.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/teknomers.com\/en\/wp-json\/wp\/v2\/comments?post=123939"}],"version-history":[{"count":0,"href":"https:\/\/teknomers.com\/en\/wp-json\/wp\/v2\/posts\/123939\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/teknomers.com\/en\/wp-json\/wp\/v2\/media\/108984"}],"wp:attachment":[{"href":"https:\/\/teknomers.com\/en\/wp-json\/wp\/v2\/media?parent=123939"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/teknomers.com\/en\/wp-json\/wp\/v2\/categories?post=123939"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/teknomers.com\/en\/wp-json\/wp\/v2\/tags?post=123939"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}