DAXA's new API key standard targets improper key sharing after the FSS warned API trading makes up 30% of Korean crypto turnover. IP whitelisting and forced key expiration are key tools.
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South Korea's Digital Asset Exchange Alliance (DAXA) has introduced a new API key standard for local crypto exchanges, targeting improper key sharing and potential market abuse. The move follows a warning from the Financial Supervisory Service (FSS) that API-based trading now accounts for about 30% of domestic crypto turnover.
The FSS said automated trading through APIs can create false volume and distort token prices. Reports cited repeated small trades, spoofed orders, and coordinated activity across many accounts, actions that can make a token look more active than it really is.
The Asia Business Daily reported that some users had lent or shared API keys with others. Those keys were then linked to unfair trading practices, including possible price manipulation.
DAXA said shared keys can give outside tools access to price checks, balances, orders, deposits, and withdrawals. The new standard targets cases where users hand over keys or allow others to trade through their exchange accounts.
Under the new policy, exchanges can increase monitoring after suspicious activity. They can also send warnings, require identity checks again, and force API keys to expire.
Member exchanges will add IP whitelisting systems. This means API keys can only work from IP addresses that users register in advance. The system can make shared keys harder to use and help exchanges spot access from unusual locations or outside trading systems.
When an exchange suspects improper API key lending, it can:
The rule does not ban API trading. It instead creates a framework for action when account access looks suspicious.
The rules apply to DAXA member exchanges: Upbit, Bithumb, Coinone, Korbit, and Gopax. These platforms dominate South Korea's regulated crypto exchange market.
Kim Jae-jin, DAXA's executive vice chairman, said the group will "respond swiftly to new and emerging threats." He said user protection remains the main value behind the new measures.
The API rule adds to a wider push across South Korea's crypto market. Regulators have already moved to tighten exchange checks after past control failures.
As previously reported by crypto.news, South Korea ordered local exchanges to add five-minute balance checks, automatic trading halts, and monthly audits after a major Bithumb error.
Separate coverage also showed DAXA warning that a proposed AML rule could raise suspicious transaction reports from 63,000 to more than 5.4 million.
The regulator also warned users about high-frequency trading code shared online. It urged investors to avoid chasing sudden price spikes without clear reasons.
The new standard gives exchanges a direct way to act when account access looks suspicious. IP whitelisting can block many shared-key setups. Faster monitoring and forced key expiration can limit damage from compromised accounts.
If exchanges apply the rules inconsistently, users may shift to platforms with weaker enforcement. If the 30% API trading share continues to grow, the FSS may push for broader restrictions. A high-profile manipulation case using shared keys could accelerate regulatory action.
The latest API standard shows the same direction. Korean regulators and exchanges are moving toward faster controls, closer monitoring, and earlier action against market abuse.
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