Regulatory Intervention as API Incentive Dispute Escalates
South Korea’s Consumer Dispute Resolution Committee has initiated formal collective mediation over a controversial incentive program linked to a major cryptocurrency platform’s API trading campaign. The move follows widespread backlash after users were denied promised rewards despite meeting initial eligibility criteria.
Last November, the exchange launched a promotion offering full fee rebates and a 100,000 KRW bonus for first-time API traders—an initiative aimed at boosting technical integration and market engagement. It quickly drew significant participation from algorithmic and high-frequency traders.
Sudden Policy Shift Sparks User Backlash
Mid-campaign, the platform introduced new restrictions, excluding users deemed to have joined 'solely for incentive harvesting' through one-off trades. This retroactive change disqualified many participants who had already fulfilled the original terms.
- Users argue the revised rules lacked clarity and were applied unfairly
- Complaints surged over transparency and contractual integrity
- The Consumer Damage Detection System flagged the issue as a systemic concern
By January, 77 affected individuals had registered claims, leading to a formal mediation request. The committee approved the case on the 5th, marking a critical step toward resolution. A public notice will be issued by the 23rd, with settlement discussions to follow. This case could set a precedent for accountability in crypto-based promotional campaigns.