Lee Bok-hyun "Managing WEMIX Delisting to Prevent Financial Market Impact Is Important... Need to Assess Appropriateness"

Photo by Financial Supervisory Service

[Asia Economy Reporter Lee Jung-yoon] Lee Bok-hyun, Governor of the Financial Supervisory Service, stated regarding the termination of trading support (delisting) for the virtual asset WEMIX issued by Wemade, "It is important to manage whether the rapid movements in the cryptocurrency market have any impact on the traditional financial market and to ensure there are no negative effects."

Governor Lee made these remarks on the 7th after meeting with reporters following the 'Research Institution Heads Meeting' held at the Bankers' Hall in Jung-gu, Seoul.

He continued, "Even if the confusion caused by cryptocurrencies does not spill over into the financial market, investors may have borrowed money or used leverage somewhere, so during a period of interest rate hikes, the burden of consumer losses increases, which can similarly act as a financial market-related burden. We are monitoring and managing these aspects," he explained.

Furthermore, he said, "It is not appropriate to comment on whether the delisting of individual items is appropriate or not. If DAXA (Digital Asset Exchange Joint Council) took action based on fair internal and external standards, I think it is necessary to review whether those standards were correct or incorrect," he added.

According to the legal community, the Seoul Central District Court Civil Division 50 (Presiding Judge Song Kyung-geun) is scheduled to decide on the injunction application to suspend the effect of the WEMIX delisting decision today. Previously, on the 24th of last month, DAXA decided to delist WEMIX. A significant violation of circulation volume by WEMIX played a decisive role, and inadequate or incorrect information provided to investors, as well as errors and trust damage in the materials submitted during the explanation period, were also causes of the delisting.