Whether or not to trade is determined by each exchange
Currently, there is no legal basis for management and supervision
Authorities seem to look into improving fairness and systems
As major domestic virtual currency exchanges decided to delist the virtual currency ‘WEMIX’ of the game company WeMade, the situation is spreading as WeMade announced a legal response.
In the absence of a clear legal basis for virtual currency delisting, the positions of both sides are at odds, and the financial authorities have begun reviewing whether there is room for institutional improvement in the standards for delisting virtual currencies.
According to the financial sector 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 game company.
Regarding the delisting of virtual currencies, there is currently no legal and institutional mechanism for financial authorities to manage and supervise. Delisting of virtual currencies is determined by each 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 distribution standard of virtual currency exchanges such as Upbit is not clear. At a 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 the exchanges to request the cancellation of the delisting decision.