Upbit, Bithumb, Coinone Designate HiFi(HIFI) as a Cautionary Trading Item

# South Korean Crypto Exchanges Flag HiFi(HIFI) as Investment Warning Asset On March 28, leading South Korean cryptocurrency exchanges Upbit, Bithumb, and Coinone designated HiFi(HIFI) as an investment warning asset, citing investor protection concerns. HiFi was flagged under the oversight of the Digital Asset Exchange Alliance (DAXA), a coalition of South Korean cryptocurrency trading platforms. DAXA coordinates joint actions among member exchanges, including issuing investment warnings, designating assets for caution, and ending trading support to safeguard investors' interests. According to the exchanges, several deficiencies were identified in HiFi’s operational framework. This included inadequacies in its updated business plans, token issuance and circulation plans, and the current execution of its business activities. Upbit specifically noted, "HiFi has made arbitrary changes to significant matters without justifiable reasons, which could potentially harm users. Thus, we have designated the asset as an investment warning." In response, Upbit and Bithumb suspended deposit services for HiFi as of 3 p.m. (local time) on March 28. This designation period is expected to last approximately two weeks. A follow-up announcement regarding extension, removal of the designation, or termination of trading support is anticipated in the second week of April. Coinone also flagged HiFi as an investment warning item on the same day and issued a notice alerting users to a potential suspension of deposit services. Coinone further indicated that trading support for HiFi could be terminated should the outlined concerns fail to be addressed adequately. Once an asset is designated as an investment warning, each cryptocurrency exchange conducts an internal evaluation through explanatory procedures. Depending on the outcome, the exchanges will decide whether to extend the designation, lift it, or terminate trading support for the asset. This latest action underscores the heightened regulatory scrutiny by Korean exchanges, emphasizing investor protection amid the volatile digital asset landscape.