KODEAC Chairman proposes regulated access to overseas crypto exchanges

Park Chang-beom, Chairman of Korea Digital Asset Evaluation & Certification (KODEAC), has proposed establishing an official channel for South Korean investors to access overseas cryptocurrency exchanges through domestic registered exchanges. This initiative aims to provide a safety net for investors who currently seek global liquidity and diverse asset lineups on foreign platforms, where they often lack legal recourse during disputes such as account freezes or withdrawal restrictions.

The proposed 'cross-border order brokerage and custody' system would function similarly to overseas stock trading. Under this model, domestic exchanges would act as infrastructure providers, relaying orders to pre-vetted, qualified overseas exchanges. Domestic entities would handle customer verification (KYC), anti-money laundering (AML) monitoring, and complaint management, while assets would be held by domestic operators or licensed custodians.

To prevent market dominance by large domestic exchanges, Park suggested an open structure that limits exclusive contracts and requires the disclosure of order paths and fees. He emphasized that market oversight and listing eligibility reviews should be managed by independent external bodies rather than the exchanges themselves. KODEAC plans to collect data on damages occurring during overseas exchange usage to assist in future regulatory improvements.