South Korea’s DAXA Cracks Down on Crypto API Abuse
Crypto South Koreas DAXA Cracks Down on Crypto API AbuseDAXA mandates Upbit, Bithumb, Coinone, Korbit, and Gopax to invalidate suspicious shared API keys.Automated trading accounts for 30% of Korean crypto volume, making API governance a systemic issue.Exchanges must now monitor, warn, re-verify, and force-expire API keys based on risk level detected. South Korea‘s Digital Asset Exchange Alliance (DAXA) has established mandatory compliance standards requiring the country’s major cryptocurrency exchanges to detect and invalidate API keys suspected of being improperly shared or lent between users. The policy, announced May 28, targets a specific exploitation method that has been used to facilitate price manipulation and unfair trading practices across Korean crypto markets. DAXA member exchanges, including Upbit, Bithumb, Coinone, Korbit, and Gopax, are all subject to the new standards. Why This Matters API keys are access credentials that allow users and external programmes to interact with exchange accounts, placing orders, checking balances, and executing withdrawals without manual login. When lent or shared with third parties, they become a tool for coordinated trading activity that can manipulate prices while obscuring who is actually behind the trades. The Financial Supervisory Service of Korea said that automated trading currently accounts for approximately 30% of cryptocurrency trading volume in the country, making