South Korea tightens grip on digital asset trading
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Loading... - Byung-wook Kog
- 05 May 2023
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Game developer Wemade’s inaccurate disclosure about digital token’s circulation was a wake-up call for regulators
Last year’s troubles with wemix — a digital coin issued by South Korean game developer Wemade — were a wake-up call for investors and regulators alike in a digital currency market that, though one of the world’s biggest, remains largely unregulated.
Wemade was one of the first major South Korean game companies to develop so-called “play-to-earn” video games, where gamers can accumulate cryptocurrency. Wemix tokens, used in the Mir 4 online game, quickly gained popularity among crypto investors. But discontent rose sharply as Wemade expanded the distribution of wemix beyond the promised amount to fund the company’s business expansion.
“Violating its market disclosure was a serious matter as it could undermine the coin’s value and disrupt the market mechanism,” recalls Kim Ik-hyun, a partner at Yulchon, who is leading the South Korean law firm’s digital asset team. Local cryptocurrency exchanges set up the Digital Asset Exchange Alliance (DAXA) to protect investors last June, after many were hit by the $40bn collapse in May of the terraUSD and luna coins developed by the disgraced South Korean crypto king Do Kwon. Read More…
