Previously Delisted WEMIX—Re-listed on Korean Digital Asset Exchange Coinone

Korean virtual asset exchange Coinone re-listed WEMIX, a cryptocurrency issued by game company Wemade, stating that the distribution issue of WEMIX has been resolved. On December 8^th last year, the Digital Asset eXchange Alliance (“DAXA”), which is joined by the five major exchanges operating in the KRW market including Coinone, decided to delist WEMIX. They reasoned that WEMIX’s distribution plan was different from the actual distribution volume and that it provided incorrect information to investors.

Following the delisting, Wemade implemented supplementary measures and subsequently submitted related data to Coinone to be reviewed for re-listing, from which the exchange deemed the cryptocurrency to be acceptable to be re-listed. Coinone explained the reason for the re-listing, stating, “Wemade has improved investors’ access to token issuance and distribution information by providing a real-time monitoring function through an external platform.”

However, as Coinone re-listed WEMIX without consultation with other DAXA members, some industry participants deemed the decision confusing. An industry insider commented that Coinone’s decision could raise questions on the purpose and reliability of DAXA and that it may appear that DAXA had previously made a hasty decision to delist WEMIX from their exchanges. Coinone responded to such concerns by stating that the authority to list a cryptocurrency is held individually by each exchange and that WEMIX was re-listed as it passed the screening according to the procedure after the application for listing was submitted.

Regarding the matter, an official from the Financial Services Commission (“FSC”) commented, “It is not a matter to directly intervene as the listing or delisting of individual coins is at the exchange’s own discretion, but the issue of re-listing of delisted coins needs to be carefully judged from the standpoint of realizing the public interest, protecting investors, and reliability of the exchange.” As the exchanges affiliated with DAXA, including Coinone, collectively announced the delisting of WEMIX, only those who sold the cryptocurrency suffered losses.

As Coinone’s announcement to re-list WEMIX was largely unexpected by most, it can be predicted that the financial authorities, especially those that have already been monitoring the WEMIX situation, will examine the development of the matter even more closely.

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