DAXA establishes advertising and promotional standards for virtual asset service providers…"Transparent disclosure of fee rates, etc."

The Digital Asset Exchange Joint Consultative Body (DAXA) announced that it will implement the amendment to the 'Model Guidelines for Advertising and Promotional Activities' governing the overall advertising and promotional conduct of virtual asset service providers starting on the 13th.

The core of this amendment is to strengthen internal controls over the entire advertising and promotional process of virtual asset service providers and to expand user protection by requiring the comparison and public disclosure of transaction fee information. Recently, criticisms have been raised that various factors such as events and rewards have been reflected in fee calculations, making it difficult for users to grasp the actual fees.

Under the support of supervisory authorities, DAXA formed a task force in July and comprehensively revised the existing 'Standard Advertising Regulations.' It expanded the scope of self-regulation, which had been limited to advertising acts, to cover all promotion, and specified the items that businesses must comply with. It includes revisions to mandatory disclosures, checks on the appropriateness of advertisements, retention of advertisement review materials, a ban on loss compensation, and strengthening internal controls related to the provision of pecuniary benefits.

In addition, the establishment of fee imposition criteria for each exchange and an obligation to disclose fee rates were newly introduced. Accordingly, DAXA and major exchanges have been preemptively disclosing fee rate information on their respective websites since September 22, ahead of the amendment's effective date.

Kim Jae-jin, Executive Vice Chairman of DAXA, said, "This revision of the model guidelines reflects the operators' willingness to provide accurate information, including fee rates, to the market," adding, "We will continue our efforts to establish a fair trading order and protect users."