Major domestic virtual currency exchanges have decided to terminate (delist) transaction support for ‘Wemix’, a virtual currency created by WeMade. On the 24th, Upbit, Korea’s largest virtual currency exchange, announced that it had decided to end trading support for WEMIX, which was designated as an investment caution item through a notice on the 24th. The photo shows the WeMade office building in Seongnam-si, Gyeonggi-do on the 25th. | Yonhap News
In the wake of the controversy surrounding the delisting of WEMIX, a major domestic virtual currency exchange, the financial authorities began reviewing whether there is room for institutional improvement in the standards for delisting virtual currencies.
According to the financial industry on the 27th, the Financial Supervisory Service began institutional review regarding the standards for delisting virtual currency while monitoring market conditions after major domestic virtual currency exchanges decided to delist Wemix. Wemix is a virtual currency issued by Wemade, a domestic game company.
Currently, there is no legal or institutional mechanism for financial authorities to manage and supervise the delisting of virtual currencies. Whether or not to delist a virtual currency is determined by each virtual currency exchange itself.
Previously, on the 24th, major virtual currency exchanges in Korea supported trading for Wemix according to the decision of the digital asset exchange joint consultative body (DAXA, Daksa) composed of 5 won exchanges (Upbit, Bithumb, Korbit, Coinone, Gopax). decided to end on December 8. Daksa is a consultative body formed by five Korean won exchanges to prepare a minimum joint response standard for delisting after the Luna and Terra incidents.
When Daksa decided to delist Wemix, it pointed out that the circulation of Wemix exceeded the plan. According to CoinMarketCap, as of 8:00 pm on the 27th of last month, the distribution of Wemix was 318.42 million, 29% higher than the 245.97 million announced by WeMade.
On the other hand, Wemade’s side is protesting, saying that the standards for ‘circulation volume’ of virtual currency exchanges such as Upbit were not clear. At an emergency press conference on the 25th, WeMade CEO Jang Hyeon-guk claimed, “Upbit is the only exchange that has submitted a distribution plan.” CEO Jang said, “Even now, if you enter Upbit, there are many coins that have not disclosed their distribution plan.”
It is expected that there will be a legal battle between each exchange and Wemade over the delisting of Wemix in the legal and institutional vacuum regarding the standards for delisting of virtual currency. It is known that WeMade is preparing an injunction lawsuit against exchanges to request cancellation of the delisting decision.