South Korea contemplates control over crypto listings after…

  • South Korean authorities contemplate the outcome of new bill around listing of cryptocurrencies 
  • However, South Korean regulators were divided on the idea 

As per a local news report from South Korea, financial authorities were contemplating whether companies should be mandated to seek direct approval from regulators to list their cryptocurrencies on local digital asset exchanges.

At the time of writing, South Korean cryptocurrency exchanges were responsible for reviewing new token listings. This is a process that regulators believe may increase risks and losses for investors.

Such a bill could be included in South Korea’s upcoming Digital Asset Basic Act. This would establish an all-encompassing regulatory framework for digital assets. However, regulators were divided on the idea.

WEMIX, the native token of local blockchain game maker Wemade Co., was delisted by the country’s top four exchanges last week. This was after the developer misreported the circulation numbers of its cryptocurrency.

South Korea’s Digital Asset Exchange Joint Consultative Body (DAXA) stated the WEMIX token would be delisted in December 2022. In Japan, the Virtual and Crypto assets Exchange Association (JVCEA), a self-regulatory body that oversees local crypto exchanges and examines new listings, was reportedly looking to ease the vetting process.

This process is expected to start soon, in late December 2022. Tokens will only be exempt from scrutiny if they have previously been listed in the local crypto market.

Wemix Token delisted by four crypto exchanges

Under South Korean law, the Financial Services Commission (FSC) reviews new stock offerings. A Seoul court denied a request for an injunction filed by metaverse project Wemade earlier this week.

This was after its WEMIX token was delisted from four South Korean crypto exchanges. This included Upbit, Bithumb, Coinone and Korbit. WEMIX fell from $1.55 to 46 cents, wiping out $287 million. After being delisted by several exchanges, the token was trading at a 90% decline at press time.

The WEMIX token was delisted by the exchanges that comprised the Digital Asset eXchange Association, due to inaccuracies in circulating supply figures.

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