Wemade Withdraws Cryptocurrency Wallet Service from Korea Amid 'Unreported Suspicion'

[Image source=Yonhap News]

Wemade's cryptocurrency wallet service 'Play Wallet' is withdrawing from the domestic market. This is interpreted as a response to the authorities' investigation over suspicions of 'unregistered virtual asset business.'

According to the industry on the 28th, Wemade's Singapore-based subsidiary, WEMIX Foundation, announced on the 24th that it would block Korean IP access to Play Wallet and exclude Korean language support.

The update is scheduled for June 25, and access for asset withdrawals within Play Wallet will be supported until September 25.

The management stated, "Even after the update, access by Korean users will be blocked, but digital assets will remain stored as is, and the company cannot access or dispose of them."

Regarding this measure, the virtual asset industry analyzes that Play Wallet is under investigation by authorities due to recent suspicions of unregistered virtual asset business operations.

According to the Act on Reporting and Using Specified Financial Transaction Information, virtual asset wallet or exchange services must report to the Financial Intelligence Unit (FIU) as virtual asset service providers if they operate without issuing private keys that grant users access to cryptocurrencies.

The Digital Asset Exchange Association (DAXA), a joint council of domestic cryptocurrency exchanges, reported to the FIU earlier this year that Wemade operated Play Wallet and the virtual asset exchange 'Phoenix DEX' without issuing private keys.

It is also reported that the prosecution recently assigned the investigation team to look into the suspicions of unregistered business operations. The Seoul Southern District Prosecutors' Office is investigating the case where WEMIX investors filed a complaint against Wemade Vice Chairman Jang Hyun-guk for alleged distribution fraud, as well as the suspicions of large-scale cryptocurrency transactions involving Assemblyman Kim Nam-guk.