Broker Review

Unauthorised / Risk Warning Details

Name: SNX (Synthetix Token)
Type: DeFi token (Ethereum-based)
Website: synthetix.io

South Korea’s Self-Regulatory Body Flags SNX

In April 2025, the Digital Asset Exchange Alliance (DAXA), a self-regulatory organization in South Korea, placed SNX, the native token of Synthetix, under a “trading warning product” designation.

This triggered coordinated responses among South Korea’s major exchanges:

• Upbit and Bithumb — suspended SNX deposits and attached cautionary notices.

• Korbit and Coinone — applied warning tags but allowed trading to continue.

The warnings came after concerns about sUSD (Synthetix’s stablecoin) losing its USD peg, since sUSD is backed by collateral in SNX. Volatility and systemic risk in Synthetix’s design led exchanges to review SNX’s status, with the possibility of delisting if issues persist.

It’s important to note that DAXA’s designation is not a government ban. Rather, it is an industry-level caution that signals heightened risk and requires exchanges to increase monitoring or limit features such as deposits. Nonetheless, such coordinated action indicates that key market players in South Korea see elevated risk in trading or holding SNX at present.

Location & Risk Notes

• Regulatory / Self-Regulatory Status:

  • South Korea: DAXA flagged SNX as a “trading warning product” (April 2025).

  • Not banned, but major exchanges added restrictions or cautionary labels.

• Exchanges’ Actions:

  • Upbit & Bithumb: suspended deposits.

  • Korbit & Coinone: warning labels, no suspension.

  • Exchanges indicated they may delist SNX if collateral and stability risks remain unresolved.

• Underlying Risk Factors:

  • sUSD depeg created instability, since sUSD is collateralized by SNX.

  • Over-collateralization model exposes stakers to volatility and leverage risks.

  • Reliance on price oracles (e.g., Chainlink) introduces technical and systemic vulnerabilities.

• Global Context:

  • SNX continues trading internationally, integrated across DeFi protocols.

  • No formal government regulatory bans yet, but regulatory uncertainty around synthetic assets remains high.

Conclusion:
While not outright banned, SNX is under formal caution in South Korea’s market, with exchanges warning users of elevated risks tied to its stablecoin system and volatility. Investors should be aware that such warnings often precede stricter measures, such as trading halts or delistings, if underlying concerns are not addressed.