South Korean Authorities Are Considering Taking Control Over Cryptocurrency Listings

South Korean Authorities Are Considering Taking Control Over Cryptocurrency Listings

The financial authorities in South Korea are now debating over the potential mandates for firms to pursue approvals straight from the regulatory authorities for the listing of their crypto assets. As per the reports, they are considering allowing the firms to get their digital assets listed on the native exchanges through authorization directly given by the regulatory agencies.

Authorities in South Korea Consider Crypto Listings’ Regulation in the Wake of WEMIX Delisting

At present, crypto exchanges are solely responsible for the review of the latest token listings across the South Korean jurisdiction. This is now being viewed by the regulators as a procedure that may enhance the hazards as well as losses to be posed to the investors, as reported by the local media. In this respect, directories may propose a bill that would be a part of the next Digital Asset Basic Act of the country.

The respective act is an all-inclusive regulatory agenda to cover digital assets. Nonetheless, there is a difference of opinion between the regulatory authorities on the matter, as per The Herald Business (a news outlet). The latest developments in the country have been business after a delisting decision made by the prominent 4 exchange companies of South Korea in the previous week.

The respective exchanges simultaneously delisted the WEMIX (the local token of Wemade Co. – a blockchain game developer operating within the South Korean jurisdiction). The reason mentioned for this decision was that the developer misreported its crypto token’s circulation numbers.

After that, a local court favored the decision taken by those platforms which delisted the above-mentioned token and dismissed the request made by Wemade to cancel the respective delisting.

On the 7th of December, the judgment was passed by the Seoul Central District Court for the justification of the decision formerly taken by the Digital Asset eXchange Alliance (DAXA) for WEMIX’s delisting from prominent exchanges in South Korea.

The DAXA plays the role of a group of crypto exchanges denoting the biggest companies in South Korea such as Gopax, Korbit, Coinone, Bithumb, and Upbit. The DAXA stated that Wemade remained unsuccessful in adequately revealing the unsettled tokens.

While stressing that the token distribution’s transparent reporting is very significant, the court supported the stance made by the DAXA. While responding to the new judgment, Wemade claimed to keep on continuously confronting DAXA on the legal front by appealing the order of the court.

It added to filing a lawsuit. Apart from that, it has a strategy to submit a protest to the Korea Fair Trade Commission (known as a prominent regulatory body engaged in the country’s economic competitiveness.

On the other hand, in Japan, the Japan Virtual Currency Exchange Association (JVCEA) – which is also considered a self-regulatory entity responsible for overseeing the local crypto exchange platforms – is looking into the latest crypto listings being carried out on the exchanges. The agency is reportedly endeavoring to provide convenience in the vetting procedure within December.

WEMIX Token Continuously Plummets After Delisting

In this case, JVCEA will attempt to exempt the examination of those tokens which have formerly been listed on the native crypto exchanges.

In line with the local law enacted in South Korea, an exclusive stock offering is being examined by the Financial Services Commission (FSC). The WEMIX token has been seeing a continuous slump in the wake of its delisting saga since the latter period of November this year.