Financial regulators in South Korea are reviewing a plan on whether it should be mandatory for companies to get direct permission from authorities before listing their crypto-currencies on domestic digital asset exchanges, local media reported on December 12th.
There have been opinions that the financial authorities should look into both the listing and delisting of coins on local exchanges following the recent delisting of the crypto-currency Wemix, which was formerly referred to as the “representative kimchi coin” in Korea.
In accordance with the recent reports, the Seoul Central District Court issued a judgment on December 7th supporting the Digital Asset eXchange Alliance’s (DAXA) choice to delist WEMIX from leading South Korean crypto exchanges.
The Digital Asset Exchange Joint Consultative Body (DAXA), a group of cryptocurrency exchanges that includes South Korea’s most prominent companies, including Upbit, Bithumb, Coinone, Korbit, and Gopax, said that Wemade had failed to disclose the volume of tokens in circulation in a legitimate manner.
Nevertheless, this new plan’s opinions arose among the financial authorities, including the Financial Services Commission (FSC) and the Financial Intelligence Unit (FIU).
It was proposed that the FSC should approve coin listings on crypto exchanges. “However, opinions are divided internally, so it seems that it remains to be seen whether it will be realized.”
According to the report:
It is argued that the risk burden is too great for companies to voluntarily entrust the listing of coins on domestic exchanges, such as obtaining approval from the Financial Services Commission in accordance with the Capital Markets Act when raising securities for listing.
DAXA Action Mounts Concerns For Crypto Listing
The Capital Markets Act requires that all public offerings or sales of securities be accompanied by a report to the FSC for approval. If the FSC determines that the publicly submitted statement has any formal mistakes, it can require the company to submit another corrective document stating the reasons.
However, the listing of coins on each exchange’s listing committee is entrusted to them for virtual assets, but the DAXA also takes action on its own when a currency is delisted. Following Daksa’s recent decision to delist Wemix, opinions are mounting that FSC should take immediate action to “prevent such a situation.”
There are now seven virtual asset-related measures pending in the National Assembly, and the financial authorities are debating putting a provision resembling the Capital Markets Act in one of them.
Nevertheless, there is also strong opposition to the coin’s listing proposal. The reason is that the financial authorities may feel burdened, and there is a strong chance that the market would object to any regulation plan that significantly alters the exchange listing.
According to a representative of the financial authorities:
Internally, the position that the financial authorities should be involved in both listing and delisting of coins and the opinion that ‘let’s go slowly’ after passing only the basic bill are compatible.