DAXA Boundless (ZKC) Warning Issued by Crypto Exchanges

Background on the DAXA Warning

The Korea Digital Asset Trading Platform Association (DAXA), a group that includes major South Korean cryptocurrency exchanges Upbit and Bithumb, has issued an investment alert regarding the cryptocurrency Boundless (ZKC). The designation of Boundless (ZKC) as an investment alert was also announced by exchanges Coinone, Upbit, and Bithumb, which are all DAXA members. This move underscores the heightened scrutiny surrounding the altcoin sector in South Korea.

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Bithumb stated that its decision came after it was determined that the Boundless (ZKC) project had “arbitrarily changed critical information without proper justification.” The exchange further cited multiple procedural issues related to the implementation and disclosure of these project changes. These findings led to the application of an investment alert on ZKC by all DAXA-member exchanges.

Market Action and Exchange Response

In accordance with the DAXA Boundless (ZKC) warning, Upbit announced that ZKC deposit services would be “temporarily suspended.” This move aims to reduce any potential risk for investors. The association’s statement highlighted ongoing concerns about project transparency and communication: “Boundless (ZKC) has been identified as having the potential to harm users due to its failure to publicly disclose important project-related issues or arbitrarily changing them without justifiable cause,” according to a DAXA statement.

DAXA clarified the measure was imposed as a precaution while the group “verifies the accuracy of these issues and prevent[s] further user harm.” The trading alert is set to remain in place for approximately two weeks while the member exchanges conduct a thorough investigation into the matter.

What’s Next for Boundless (ZKC) and Investors

For the duration of the warning, Boundless (ZKC) users on Upbit, Bithumb, and Coinone face suspended deposit services and increased monitoring of ZKC-related activity. All three exchanges informed their users about the alert designation in official statements and urged caution regarding Boundless (ZKC).

The situation underlines the important role that South Korea’s digital asset platforms and oversight bodies play in maintaining disclosure and user safety in the cryptocurrency market. Investors are encouraged to follow up on further announcements by DAXA and exchanges regarding any changes to the Boundless (ZKC) investment alert.

For broader news and updates on cryptocurrency regulations, see the cryptocurrency section on Vizi.com.