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South Korea’s DAXA targets crypto API keys after 30% warning

South Korea’s crypto exchanges are adopting a new standard for API keys. This change is designed to prevent the misuse of API keys and potential manipulation of the market.

Summary

  • DAXA will now force suspicious API keys to expire after warnings, monitoring, and user checks.
  • FSS said API-based trading accounts for around 30% of South Korea’s domestic crypto market turnover.
  • Upbit, Bithumb, Coinone, Korbit, and Gopax will now add stricter monitoring and IP whitelist systems.

This new rule follows increased scrutiny of automated cryptocurrency trading by financial regulators. The Financial Supervisory Service reports that trading using application programming interfaces (APIs) now accounts for roughly 30% of all cryptocurrency trading within the country.

South Korea’s group of cryptocurrency exchanges, called DAXA, is increasing security measures. They now require exchanges to disable API keys if there’s evidence they’re being improperly shared. Financial regulators stated this impacts automated trading accounts for a significant number of users…

— Wu Blockchain (@WuBlockchain) May 29, 2026

DAXA targets shared API keys

DAXA announced that the new policy will be enforced whenever exchanges notice suspicious activity related to the sharing of API keys. These keys can allow unauthorized tools to access sensitive user information, including price data, account balances, and transaction history like deposits and withdrawals.

According to the Asia Business Daily, some users have been giving their API keys to others. This has led to potentially unfair trading activities, and there are concerns about possible price manipulation.

With the updated rules, exchanges now have more power to keep an eye on things after they notice something unusual. They can issue warnings to users, ask for re-verification of identities, and even automatically invalidate API keys for security purposes.

Kim Jae-jin, a leader at DAXA, stated the organization will quickly address any new security risks. He emphasized that protecting users is the primary goal of these new steps.

FSS warning raises pressure on exchanges

The recent warning from FSS is putting additional strain on cryptocurrency exchanges. Regulators are concerned that automated trading programs can artificially inflate trading activity and manipulate token prices.

Investigations revealed a pattern of frequent, small trades, fake orders designed to mislead, and teamwork among numerous accounts. These tactics artificially inflate the apparent trading volume of a token.

The regulator cautioned users about the risks of trading code found online. It advised investors not to rush into buying when prices suddenly jump without a good explanation.

The recently implemented DAXA policy addresses this concern by allowing exchanges to immediately respond to potentially compromised account access.

Upbit and Bithumb face stricter API checks

These rules affect cryptocurrency exchanges that are part of DAXA, such as Upbit, Bithumb, Coinone, Korbit, and Gopax. These exchanges are the leading platforms in South Korea’s regulated crypto market.

Member exchanges will soon have a new security feature: IP whitelisting. This will restrict API key access to only pre-approved IP addresses, enhancing account security.

This system improves security by making it more difficult for hackers to use stolen keys. It also allows exchanges to identify suspicious access attempts, such as logins from unexpected places or systems not normally used for trading.

This rule doesn’t prohibit automated trading. It focuses on preventing users from sharing their account access or letting others trade on their behalf.

Korea expands crypto exchange oversight

This new API rule is part of a larger effort to strengthen South Korea’s cryptocurrency market. Following previous issues with oversight, regulators are increasing scrutiny of crypto exchanges.

Following a significant error at Bithumb, South Korean regulators have instructed local cryptocurrency exchanges to implement stricter controls. These include balance checks every five minutes, automatic trading pauses, and monthly audits, as crypto.news previously covered.

Industry group DAXA has cautioned that a new anti-money laundering rule could dramatically increase the number of suspicious transaction reports, potentially jumping from 63,000 to over 5.4 million.

The newest API guidelines confirm a growing trend: South Korean authorities and cryptocurrency exchanges are increasingly focused on quicker responses to and prevention of market manipulation and illegal activities. They’re aiming for stricter oversight and faster intervention when issues arise.

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2026-05-29 11:58