DAXA holds meeting to bolster compliance with ban on transactions with unregistered virtual asset operators

The Digital Asset Exchange Association (DAXA) announced on the 1st that it held a meeting on the 30th at DreamPlus Gangnam for domestic virtual asset service providers to enhance compliance with the obligation to prohibit transactions with unregistered virtual asset operators.

Under the current Act on Reporting and Using Specified Financial Transaction Information (hereinafter the Specific Financial Information Act), operators can only operate domestically if their filing is accepted by the Director of the Financial Intelligence Unit, and, in addition, under Article 10-20 of the Enforcement Decree of the same Act, transactions for business purposes with operators who have not fulfilled the registration/change notification obligation are prohibited.

However, due to blockchain technology characteristics such as automatic execution and anonymity, it can be difficult to verify the identity of the sender when transferring virtual assets, and industry-level concerns have been raised that there are some limitations in fully identifying transactions linked to unregistered operators. This meeting was organized to overcome these practical constraints and to enhance the industry's ability to identify unregistered operators.

The meeting began with blockchain data analysis solution providers Chainalysis and TRM Labs introducing solutions that can be used to identify unregistered operators and explaining methods to more quickly and accurately determine potential links to unregistered operators.

Following that, Upbit and Bithumb shared practical cases such as verifying wallet addresses of unregistered operators and response measures, contributing to strengthening the industry's overall capacity to respond to unregistered operators. DAXA expects that, through this meeting, combining information sharing among domestic operators with external expert capabilities will further strengthen identification and management capabilities regarding unregistered operators.

Kim Jae-jin, DAXA Standing Vice Chairman, said, "It is significant that the entire industry has agreed to actively cooperate to block transactions with unregistered operators," adding, "We will continue to communicate closely with the industry to develop effective response measures and create a trading environment that investors can feel secure in."