Urgent Alert: Bithumb Designates SNX and ASM as Closely Monitored Assets

Attention, cryptocurrency traders and holders! Major South Korean crypto exchange Bithumb has issued a significant announcement that impacts users holding or trading Synthetix (SNX) and Assemble AI (ASM). The exchange has officially designated both assets as ‘closely monitored assets’. This move comes as a direct result of a decision made by the Digital Asset eXchange Alliance (DAXA), a key consultative body in the South Korean crypto space.

What Does ‘Closely Monitored Assets’ Mean on Bithumb?

When an asset is labeled as a ‘closely monitored asset’ by an exchange like Bithumb, it signals a heightened level of scrutiny. This status is typically assigned when certain concerns arise regarding the project, its market conditions, regulatory compliance, or other factors that might affect investor protection or market integrity. It’s essentially a warning period.

For SNX and ASM, this designation by DAXA and subsequent action by Bithumb triggers specific immediate consequences for users:

• Deposit Suspension: As announced, Bithumb suspended deposits for both SNX and ASM effective from 06:00 UTC on April 24. This means users cannot transfer these tokens from external wallets or other exchanges into their Bithumb accounts.
• Increased Scrutiny: The projects will undergo a period of intense review by Bithumb and potentially other DAXA member exchanges.
• Potential Future Actions: While not immediately implemented, the ‘closely monitored’ status can potentially lead to further actions, including trading restrictions or, in more severe cases, delisting if the concerns are not adequately addressed by the project teams within a specified timeframe.

Why Did DAXA Designate SNX and ASM?

The Digital Asset eXchange Alliance (DAXA) plays a crucial role in self-regulating the South Korean crypto market. Its members include the country’s largest exchanges (like Bithumb, Upbit, Coinone, Korbit, and Gopax). DAXA aims to protect investors and ensure a healthy market environment by setting standards and coordinating responses to potential risks associated with digital assets. While the specific reasons for DAXA’s decision to flag SNX and ASM were not detailed in the announcement, common triggers for such monitoring include:

• Significant price volatility or unusual trading patterns.
• Issues with the project’s technology or development progress.
• Changes in the project team or governance structure.
• Concerns regarding regulatory compliance or legal issues.
• Low liquidity or trading volume.
• Lack of communication or transparency from the project team.

The fact that DAXA collectively made this decision suggests there are shared concerns among the leading exchanges regarding these specific assets.

What Should SNX and ASM Holders on Bithumb Do?

If you hold SNX or ASM on Bithumb, it’s crucial to stay informed. While deposits are suspended, check the exchange’s official announcements regarding the status of trading and withdrawals. Typically, withdrawals remain possible during a monitoring period, allowing users to move their assets off the exchange if they choose. Trading might also continue, but this is at the exchange’s discretion.

Here are some actionable steps:

1. Monitor Bithumb’s Official Channels: Regularly check the Bithumb website and official social media for updates on SNX and ASM.
2. Assess Your Holdings: Consider your risk tolerance and whether you want to keep your assets on the exchange during this monitoring period.
3. Plan for Potential Scenarios: Be prepared for the possibility of continued monitoring, further restrictions, or even delisting if the issues aren’t resolved.
4. Understand the Projects: If you are invested in SNX (Synthetix is a decentralized synthetic asset protocol) or ASM (Assemble AI is focused on blockchain-based data marketplaces), try to understand if there are any public issues with the projects themselves that might have led to this situation.

The designation as closely monitored assets is a serious step by Bithumb, prompted by the collective decision of DAXA. It underscores the evolving regulatory landscape and the efforts by South Korean exchanges to manage risks within the digital asset market.

Conclusion: Navigating Uncertainty with Closely Monitored Assets

The decision by Bithumb, following the lead of DAXA, to designate Synthetix (SNX) and Assemble AI (ASM) as closely monitored assets is a key development for users of the South Korean exchange. The immediate consequence is the suspension of deposits for both tokens. This action highlights the role of alliances like DAXA in coordinating risk management among exchanges and serves as a cautionary signal to investors. Holders of SNX and ASM on Bithumb should remain vigilant, monitor official communications, and consider their options as the situation develops. The coming weeks will reveal whether the projects can address the concerns that led to this monitoring status or if further actions will be taken by Bithumb and other DAXA members.