Major domestic virtual currency exchanges have decided to end transaction support (delisting) for ‘Wemix’, a virtual currency created by WeMade. On the 24th, Upbit, Korea’s largest virtual currency exchange, announced that it has decided to end trading support for WEMIX, which was designated as an investment warning 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 to review whether there is room for institutional improvement in the standards for virtual currency delisting.
According to the financial industry on the 27th, the Financial Supervisory Service began an institutional review regarding the standards for delisting virtual currencies while monitoring market conditions after major domestic virtual currency exchanges decided to delist Wemix. Wemix is a virtual currency issued by Wemade, a domestic gaming company.
Currently, there is no legal or institutional mechanism for financial authorities to control and supervise the process of delisting virtual currencies. Each virtual currency exchange itself determines whether to delist virtual currency or not.
Previously, on the 24th, major virtual currency exchanges in Korea supported trading for Wemix according to the decision of the joint digital asset exchange advisory body (DAXA, Daksa) which includes 5 won exchanges (Upbit, Bithumb, Korbit, Coinone, Gopax). decided to end on 8 December. Daksa is an advisory body formed by five exchanges that won Korea to prepare a required joint response standard for delisting after the Luna and Terra events.
When Daksa decided to delist Wemix, he noted that Wemix’s circulation was exceeding the plan. According to CoinMarketCap, as of 8:00 pm on the 27th of last month, Wemix’s distribution was 318.42 million, 29% higher than the 245.97 million announced by WeMade.
On the other hand, the Wemade side is protesting, saying that the standards for ‘circulation volume’ of virtual currency exchanges like Upbit were not clear. In an emergency press conference on the 25th, WeMade CEO Jang Hyeon-guk claimed, “Upbit is the only exchange that has introduced a distribution plan.” CEO Jang said, “Even now, if you go into Upbit, there are many coins that have not disclosed their distribution plan.”
It is expected that there will be a legal battle between all exchanges and Wemade over the delisting of Wemix in the legal and institutional vacuum regarding the standards for delisting virtual currencies. WeMade is known to be preparing an injunction lawsuit against exchanges to request the cancellation of the delisting decision.
