WeMade Crypto Blow as South Korean Regulators Probe Game Maker’s ‘Unregistered Sales’
The South Korean game maker WeMade crypto project suffered a blow on February 8 as regulators launched a probe into suspected “unregistered” sales on WEMIX platforms.
Maeil Kyungjae reported that the Financial Intelligence Unit (FIU), which reports to the Financial Services Commission, is spearheading the investigation.
The FIU received a tip-off about WeMade’s WEMIX platform from the Digital Asset Exchange Association (DAXA)’s Joint Advisory Group.
DAXA is a group of five registered domestic crypto exchanges. The body comprises the market leader Upbit, as well as Bithumb, Coinone, Korbit, and Gopax.
In December 2023, DAXA announced that it would begin working with regulators such as the FSC and the FIU.
The bodies pledged to help identify unregistered exchanges and sales channels by asking the public to submit tip-offs about unlicensed crypto service providers.
South Korean law stipulates that all virtual asset service providers (VASPs) – including wallet providers – must obtain permits to operate in the nation.
This rule applies not only to South Korea-based firms, but also to companies based overseas who target South Korean nationals.”
DAXA told the FIU that the WEMIX platform offers crypto “wallet services” “without reporting” its activities.
While WeMade has no shortage of overseas subsidiaries, the firm and its WEMIX coin have attracted considerable interest from domestic investors.
DAXA’s data comes from reports submitted by members of the public. The body then reviews these reports and submits them to the FIU.
The media outlet reported that “suspicions conveyed to the FIU” are that WEMIX is “conducting undeclared business” with its PLAY WALLET and PNIX DEX services.
PLAY WALLET is a wallet that supports the in-game
