The recent disclosure of virtual asset holdings reports by major domestic cryptocurrency exchanges has sparked transparency controversies. Exchanges like Upbit, Bithumb, and Coinone are publishing reports that obscure the detailed holdings of individual virtual assets, increasing investor anxiety. This lack of transparency makes it difficult for investors to assess the financial status and virtual asset holdings of the exchanges, significantly hindering their ability to evaluate investment risks.
This opaque disclosure of information leads to incomplete disclosures, eroding investor trust and amplifying market unease. Moreover, it increases the likelihood of unfair trading practices, such as wash trading and market manipulation, posing a threat to market stability. In this context, Korbit stands out by accurately disclosing the holdings of individual virtual assets and the amounts of virtual assets deposited by customers, thereby gaining investor trust.
Transparent disclosure of information is crucial for investor protection and market stability. It allows investors to make informed investment decisions and avoid unnecessary losses, while exchanges can prevent unfair trading practices and enhance customer trust. Necessary improvements include standardized disclosure of information, proactive intervention by legislative bodies or financial authorities, and reference to international regulations. Disclosures should cover not only virtual asset holdings but also the exchanges’ financial status, liquidity provision measures, and customer asset protection measures, with appropriate guidelines considering the industry’s characteristics.
For the healthy development of the virtual asset market, proactive efforts from financial authorities and the industry are essential. The current situation exacerbates investor anxiety and hampers market development. Financial authorities and the industry must secure investor trust and ensure market stability through transparent information disclosure.
