[Asia Economy Reporter Lee Jung-yoon] Controversy is spreading as the delisting of WEMIX, a cryptocurrency issued by Wemade, has been decided, and Wemade has announced its intention to take legal action. Financial authorities plan to examine whether there is room for regulatory improvement.
According to the financial sector on the 27th, the Financial Supervisory Service has been monitoring the market situation and has begun institutional review following the decision to delist WEMIX.
Currently, in the coin market, there are no legal or institutional measures that allow financial authorities to manage or supervise investor protection mechanisms or unfair trading practices. Accordingly, the government and political circles are responding by exchanging opinions with the industry through private-party-government meetings and encouraging the industry to prepare self-regulatory measures reflecting these discussions.
Earlier, on the 24th, the joint council (DAXA), a consultative body of the five major Korean won market exchanges, decided to delist WEMIX. DAXA explained, "We judged that the circulating volume exceeded the submitted distribution plan by a significant amount, which is serious," and added, "During the explanation period, various errors were found in the submitted materials, and multiple corrections or revisions occurred regarding important information such as circulating volume after submission, creating an unprecedented situation where it is difficult to restore trust in the project's internal information identification and management capabilities."
Wemade has stated its intention to file a provisional injunction lawsuit against the exchanges demanding the cancellation of the delisting decision.
Meanwhile, according to the global cryptocurrency market data site CoinMarketCap, as of 10:45 a.m. on the same day, the price of WEMIX was recorded at $0.43 (approximately 575 KRW), down 71.33% compared to 7 p.m. on the 24th before the delisting.
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
