Zoomex Joins Korea VASP Alliance, Signaling Commitment to Global Crypto Compliance

By Carol Moore

November 11, 2025

In a move highlighting the escalating drive towards regulatory compliance within the cryptocurrency sector, global exchange Zoomex today announced its membership in the Korea CODE VASP Alliance and successful integration with its Travel Rule compliance solution. This strategic alignment underscores a growing industry trend where proactive adherence to international standards is becoming a key differentiator for exchanges seeking long-term sustainability and user trust.

Founded in 2022, the Korea CODE VASP Alliance brings together leading South Korean exchanges – and increasingly, international players – to facilitate compliance with the Financial Action Task Force’s (FATF) Travel Rule. This rule mandates that Virtual Asset Service Providers (VASPs) securely exchange originator and beneficiary information for digital asset transfers, combating money laundering and terrorist financing.

“The integration isn’t just about ticking boxes; it’s about building a robust, trustworthy ecosystem,” explains a source familiar with the alliance’s operations. “The Travel Rule is complex, and collaboration is essential for its effective implementation.”

A Proactive Approach to Compliance

Zoomex’s decision to join the alliance isn’t isolated. Several global exchanges, including LBank and BYDFi, have already embraced the CODE VASP framework, recognizing the strategic advantages of aligning with South Korea’s stringent regulatory landscape. The move signals a broader industry shift away from jurisdictional arbitrage towards a more unified and compliant approach.

“We see compliance not as a burden, but as a foundation of trust,” stated Jerry Hsu, CEO of Zoomex, in the press release. “By joining the Korea CODE VASP Alliance, we are demonstrating our commitment to safeguarding our users’ assets and contributing to a more secure and transparent crypto ecosystem.”

Zoomex’s commitment extends beyond simply joining the alliance. The exchange has consistently prioritized security, undergoing multiple audits by blockchain security firm Hacken. A recent pentest and security analysis revealed seven vulnerabilities, all of which have been addressed, including a critical issue involving unauthorized fund transfers. Hacken’s ongoing audits – encompassing web, iOS, and Android applications – demonstrate a continuous commitment to bolstering platform security.

Navigating a Complex Regulatory Landscape

The increasing regulatory scrutiny surrounding the crypto industry is driving this trend towards compliance. Regulators worldwide are grappling with how to effectively oversee digital assets, and the FATF Travel Rule is a cornerstone of their efforts.

“The regulatory landscape is evolving rapidly,” notes a regulatory consultant specializing in crypto compliance. “Exchanges that proactively embrace compliance will be better positioned to navigate the challenges ahead and gain the trust of both regulators and users.”

However, implementing the Travel Rule isn't without its challenges. The rule requires VASPs to collect and verify customer information, exchange transaction data, and collaborate with other VASPs across different jurisdictions. This necessitates significant investment in technology, infrastructure, and compliance expertise.

“The biggest challenge is interoperability,” explains a source within the Korea CODE VASP Alliance. “Different exchanges use different systems and protocols, making it difficult to seamlessly exchange information. We're working on developing common standards and protocols to address this issue.”

Building Trust and Attracting Institutional Investors

Beyond regulatory compliance, proactive adherence to industry standards like the Travel Rule is crucial for building trust and attracting institutional investors. Many institutional investors are hesitant to enter the crypto market due to concerns about security, compliance, and market manipulation.

“Institutional investors are looking for credible, regulated platforms with robust security measures,” explains a portfolio manager specializing in digital assets. “Compliance with the Travel Rule is a key requirement for many institutions.”

By joining the Korea CODE VASP Alliance, Zoomex is signaling its commitment to providing a secure and transparent platform that meets the needs of institutional investors. This, in turn, can attract more capital into the crypto market and drive long-term growth.

The Future of Crypto Compliance

The integration of Zoomex into the Korea CODE VASP Alliance represents a significant step towards a more compliant and secure crypto ecosystem. As regulatory scrutiny intensifies and institutional adoption grows, proactive adherence to industry standards will become increasingly vital for exchanges seeking long-term success.

The future of crypto compliance will likely involve greater collaboration between regulators, exchanges, and technology providers. The development of common standards, interoperable systems, and automated compliance tools will be essential for effectively overseeing the rapidly evolving digital asset landscape. The emphasis will be on creating a secure, transparent, and trustworthy ecosystem that fosters innovation and protects investors. Zoomex’s move, along with those of other forward-thinking exchanges, is a positive indicator of this emerging trend.

“This isn’t just about compliance; it’s about building a sustainable future for the crypto industry,” concludes the regulatory consultant. “Exchanges that prioritize compliance will be the ones that thrive in the long run.”