S. Korea Proposes Unified Crypto Disclosure System After WEMIX Fiasco

South Korea’s monetary market watchdog, the Financial Supervisory Service, has put ahead a proposal for a unified system for obligatory info disclosure from digital asset exchanges and crypto token issuers, Asia Business Daily reported. The transfer comes after a collection of bankruptcies within the crypto house and the WEMIX fiasco final month.

South Korea Regulator Proposes Unified Disclosure System to Protect Crypto Users

South Korea’s monetary markets regulator has proposed establishing a unified system for obligatory info disclosure from crypto exchanges and digital token issuers to guard traders from fraud, in keeping with native media reviews. The proposal was put ahead through the assembly of the federal government’s Digital Assets Committee by Ahn Byung-nam, head of analysis on the regulator’s Digital Asset Research unit.

In addition, different South Korean officers referred to as for tighter disclosure on crypto bourses and token issuers within the wake of a string of collapses and frauds within the digital property business in 2022. Jeon In-tae, a professor of arithmetic at South Korea’s Catholic University, mentioned disclosing essential monetary info should be an obligation to safeguard traders. However, he added that there are at present no necessities for such digital property.

The East Asian nation has been ramping up efforts to develop a complete regulatory framework to guard traders. Several proposals have been submitted to South Korea’s National Assembly, however none have been additional mentioned at its parliamentary conferences.

South Korea’s DAXA Developing a Unified Standard for Crypto Exchanges Following WEMIX Delisting

During the assembly, the CEO of the native crypto change Coincone, Cha Myung-hun, mentioned the nation’s Digital Asset eXchange Alliance (DAXA) is engaged on a unified commonplace for crypto exchanges in token delisting, the reviews added. DAXA is a joint consultative physique launched by South Korea’s prime 5 crypto exchanges, together with Upbit, Bithumb, Coinone, Korbit, and GOPAX.

The transfer comes lower than two months after DAXA delisted WEMIX, a local token of Microsoft-backed blockchain sport developer Wemade. The alliance delisted the token on account of false reviews of the token’s circulation numbers.

Wemade filed an injunction with the court docket towards the DAXA exchanges to keep away from the delisting, but it surely was dismissed by the Seoul Central District Court. As a end result, WEMIX was delisted on Dec. 8 from Upbit, Bithumb, Coinone, and Korbit. The token was delisted only a month after Wemade bagged $46 million in funding from Microsoft and different traders.

Would you prefer to see an identical proposal within the US to offer higher safety to crypto customers? Let us know within the feedback under.

About the creator

Tim Fries is the cofounder of The Tokenist. He has a B. Sc. in Mechanical Engineering from the University of Michigan, and an MBA from the University of Chicago Booth School of Business. Tim served as a Senior Associate on the funding crew at RW Baird’s US Private Equity division, and can also be the co-founder of Protective Technologies Capital, an funding agency specializing in sensing, safety and management options.