1 day ago
15
DeFi token Synthetix (SNX) continues to face regulatory challenges in South Korea after the nation’s Digital Asset Exchange Association (DAXA) extended its caution alert on the asset.
Upbit Korea has confirmed the cautionary period extension to June 24, 2025.
신세틱스(SNX) 거래 유의 종목 지정 기간 연장 신세틱스(SNX/BTC)의 거래 유의 종목 지정 기간이 DAXA에 의해 2025-06-24(화) 15:00 (KST) 까지 연장되었습니다. Investment warning period for Synthetix(SNX/BTC) has been extended until 2025-06-24 15:00 (KST) by DAXA. 🔗 Discover
The DAXA, which comprises top exchanges like Upbit, Coinone, Bithumb, Gopax, and Korbit, scrutinizes Synthetix due to concerns associated with operational or regulatory issues.
Thus, these exchanges suspended SNX deposits following the April 24 announcement and urged users to remain cautious when interacting with Synthetix.
The latest update suggests continued regulatory scrutiny on the Synthetix DEX, casting a shadow of doubt on SNX’s performance.
The native token recorded sluggish movements in the past few sessions due to regulatory uncertainty.
SNX gained 7% in the past 30 days, while rival tokens like HYPE, JUP, and CAKE surged 90%, 35%, and 30% in that timeframe.
The ongoing developments could trigger a wave of SNX delisting, further deteriorating the altcoin’s market structure.
Understanding DAXA’s investment warning
The investment warning (under South Korea’s regulatory framework) represents a precautionary alert on a specific asset, not a ban.
Flagged tokens remain tradable, though trading platforms urge traders to exercise maximum caution when interacting with those digital currencies.
Moreover, such warnings could herald drastic actions if the project’s team fails to respond or violates given standards.
DAXA initially flagged the Synthetix protocol last month, on April 24.
While the organization didn’t clarify the reasons behind the warnings, such incidents generally stem from abnormal price actions, liquidity concerns, and intensified volatility.
Also, issues associated with the project’s disclosures and operations could attract a cautionary status.
Therefore, DAXA has monitored Synthetix’s activities, and the extension could suggest that they need more time for a thorough review.
Such moves align with South Korea’s recent clampdown on illicit crypto undertakings.
Why Sythentix?
Synthetix is a decentralized network that allows users to create synthetic tokens of real-world assets like indices, commodities, and fiat currencies.
However, this sector has attracted regulatory scrutiny despite its innovativeness, especially in jurisdictions with evolving crypto policies like South Korea.
Synthetix’s artificial trading models and financial structures might have drawn extra scrutiny as regulators safeguard investors from over-exposure to speculative assets.
Furthermore, the South Korean crypto market has been active recently, with politicians joining ahead of next week’s presidential elections.
SNX price outlook
Chart by CoinmarketcapThe native token trades at $0.7719 after losing 2.41% and 4.45% in the past day and week.
SNX could dip further due to the regulatory woes and potential delisting from top exchanges.
Meanwhile, all eyes remain on DAXA’s decision come June 24.
The post South Korea’s DAXA extends investment warning on Synthetix (SNX) until late June appeared first on Invezz
English (US) ·