Main South Korean crypto exchanges Upbit and Bithumb have suspended deposits for Synthetix (SNX) following a cautionary alert issued by the Digital Asset Trade Alliance (DAXA).
DAXA, a self-regulatory physique chargeable for setting business requirements throughout South Korean exchanges, designated SNX as an asset requiring investor warning.
Such a classification usually triggers enhanced scrutiny, with widespread responses together with tagging property with warnings, halting deposits, or suspending buying and selling to guard traders from heightened volatility.
Upbit Flags SNX with Cautionary Label and Suspends Deposits
In a be aware, Upbit introduced it has positioned a cautionary label on SNX and quickly blocked token deposits.
The alternate cited issues over the current depegging of Synthetix’s stablecoin, sUSD, noting that SNX—used as collateral for sUSD—may expose traders to important dangers.
Upbit additional highlighted a perceived lack of clear use instances for SNX, stating it could conduct a complete analysis earlier than deciding on a attainable delisting.
Synthetix ( $SNX ) stablecoin’s been off the peg for 50 days.
South Korea mentioned “nah,” and now deposits are frozen until Could 2025.
Stablecoin vibes? Not so steady. pic.twitter.com/49WeYR2Zmr— GmHodler (@GmHodler) April 24, 2025
Bithumb adopted go well with, suspending SNX deposits and issuing the same warning. Nevertheless, the alternate indicated that restrictions could possibly be lifted if underlying points are resolved.
Different main South Korean platforms, together with Korbit and Coinone, additionally issued investor alerts, including cautionary tags to SNX however stopping in need of suspending deposits or buying and selling.
The heightened scrutiny comes after sUSD, Synthetix’s stablecoin, fell sharply under its greenback peg.
On April 10, sUSD dropped to $0.83—the bottom stage in 5 years—earlier than plunging additional to $0.68 by April 18. SNX, the native token of the Synthetix protocol, has since declined by 26% over the previous month.
Synthetix founder Kain Warwick just lately urged SNX stakers to undertake a brand new staking mechanism aimed toward stabilizing sUSD, warning of potential penalties if participation remained low.
The sUSD 420 Pool, launched on April 18, provides stakers a share of 5 million SNX tokens over a 12-month interval in the event that they lock their sUSD within the pool for a full yr.
Regardless of these efforts, sUSD has solely partially recovered, reaching $0.87 on April 24 however nonetheless failing to regain its peg.
Stablecoin Depegs Stay a Recurring Problem
Depegs within the stablecoin area are usually not unusual. USDC briefly misplaced its peg in March 2023 after Circle revealed $3.3 billion in reserves had been caught with the collapsed Silicon Valley Financial institution.
Equally, TrueUSD (TUSD) dropped under $1 earlier this yr amid a wave of redemptions.
Regardless of the challenges, the stablecoin sector has grown steadily, with whole market capitalization surpassing $200 billion in 2025 and transaction quantity hitting $27.6 trillion—exceeding the mixed annual quantity of Visa and Mastercard.
In March, Federal Reserve Chair Jerome Powell affirmed the central financial institution’s assist for growing a regulatory framework round stablecoins throughout a Senate listening to.
Powell said that the Federal Reserve helps the creation of a regulatory framework for stablecoins, noting the significance of defending customers and savers.
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