South Korean exchanges remove warnings on WAVES and KAVA

An alliance comprising five major crypto exchanges has removed warnings placed on KAVA and WAVES, stating that the reasons for the warnings have been resolved.

Deposits to resume for WAVES and KAVA

Upbit, one of the five members of South Korea’s digital asset exchange alliance (DAXA), announced that WAVES and KAVA were no longer flagged under “warning items” by DAXA.

According to the announcement, deposits for both tokens will soon resume on Upbit and other South Korean crypto exchanges.

Both KAVA and WAVES were designated as cautionary items in November 2022 and December 2022 respectively, when it was discovered that kava’s stablecoin USDX stablecoin and waves’ algorithmic stablecoin neutrino dollar (USDN) depegged and failed to regain the $1 peg.

While Upbit said it will lift the warning placed on WAVES and KAVA, on May 23, the crypto exchange stated that both assets could be flagged as cautionary items in the future, “depending on whether the standard for stable coin and stable coin-related asset risk indicators is applied.”

DAXA was formed in June 2022 to ensure investor protection, following the collapse of Terra and LUNA in May 2022. The group is made from five crypto exchanges; Upbit, Coinone, Korbit, Bithumb, and Gopax. In March 2023, DAXA released new rules for token listings on South Korean exchanges.