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Media CoverageWEMIX Relisting: Coinone Chooses Practicality Over Justification.
The virtual asset industry is abuzz as Coinone resumed KRW trading of WEMIX on the 16th. It has been two months since the Digital Asset eXchange Alliance (DAXA) delisted WEMIX on December 8th last year. The sudden listing, which was not discussed with DAXA or other exchanges, has left the industry startled, and DAXA's stance on self-regulation is now being questioned. At around 9:30 AM on the 16th, Coinone announced that it would begin supporting WEMIX trading from that day. In the announcement, Coinone explained the reason for the relisting, stating, 'We have confirmed that the issues related to the violation of circulating supply, lack of information provision, and loss of trust at the time of the delisting have been resolved.' (omitted) Hyeonsu “Elliot” Jin, an attorney at the virtual asset-focused law firm Decent Law Firm, commented, "Coinone's decision does not overturn the court's judgment,' adding, 'The decision to list, delist, or relist an asset depends on the exchange's discretion, and even in the WEMIX injunction ruling, it was stated that WEMIX could be relisted if sufficient clarification is provided."
2023-02-16 etoday -
Media Coverage
The path for corporate virtual investments is opening up.
Ahead of the expected easing of regulations on virtual asset investments by corporations and institutional investors, the virtual asset industry is preparing to acquire new certification systems or develop related products. Under current laws, corporations and institutions can theoretically invest in virtual assets in South Korea. However, practical investment opportunities have been restricted due to regulations imposed by financial authorities. In an effort to revive the virtual asset industry, which has been experiencing a downturn, policymakers are now considering easing these regulations. (omitted) Legal experts also expressed positive views on allowing corporate and institutional investments. They explained that not only is corporate investment explicitly allowed under current laws, but it is also desirable from the perspective of promoting industry growth. Pureun “Ian” Hong, managing partner of Decent Law Firm, which specializes in virtual assets, stated, "According to the current Act on Reporting and Use of Specific Financial Transaction Information, corporations can invest in virtual assets if they meet certain conditions. If corporate investments are permitted, it could supply new liquidity to the market and revitalize the economy."
2023-02-15 biz.chosun -
Media Coverage
Paycoin files for injunction ahead of service termination on the 5th.
The issuer of Paycoin, a payment-type virtual asset, filed an injunction with the court against the financial authorities, just days before its service is set to end on the 5th. However, experts in the virtual asset industry believe it is unlikely that the decision will be overturned, as the financial authorities had been requesting Paycoin to secure a real-name bank account for business continuity for several months. (omitted) Legal experts also see a higher likelihood that the court will side with the Financial Services Commission (FSC). The FSC had already been requesting PayProtocol to secure a real-name account since July last year, and PayProtocol had promised to comply with the directive by the end of the year. Furthermore, the injunction filed by PayProtocol could only be granted if there is concern that the FSC's decision would cause significant harm to the market, but the suspension of Paycoin's operations does not fall under such circumstances. Pureun “Ian” Hong, the managing partner of Decent Law Firm, analyzed, "Even if Paycoin services are suspended, PayProtocol can resume its business at any time once it meets the conditions required by the FSC. Considering this, the court is likely to side with the FSC."
2023-02-02 biz.chosun -
Media Coverage
Trusted a large corporation, but now facing controversy over the 'exit scam NFT project.
As the Non-Fungible Token (NFT) market emerged between 2021 and 2022, a variety of NFT projects were launched, but many of them are now facing controversy due to improper management. There is growing concern about the so-called 'soft rug pull,' where projects attract investment by presenting convincing visions but fail to execute their business plans or simply abandon them. A rug pull is a fraudulent act in which funds are raised with the intent to deceive investors and then the perpetrators disappear or abruptly cease operations. In a soft rug pull, the business appears to be legitimate on the surface, but the funds are not used for their intended purpose or the project is poorly managed over time, indirectly causing financial damage to investors. (omitted) In the NFT market, rug pull scams are becoming increasingly common. According to the UK-based security firm Comparitech, there were 356 cases of rug pulls and scams in the global cryptocurrency market last year, a 5.4-fold increase compared to 65 cases in 2021. Of these, 274 cases were rug pull scams in 2022, nearly six times more than the 46 cases in 2021. Hyeonsu “Elliot” Jin, an attorney at Decent Law Firm, commented, "As the initial NFT boom fades, inquiries about lawsuits related to NFT rug pulls have surged. It is crucial to secure clear documentation on the identities of the project operators, promotional and investor relations (IR) materials, and the usage of raised funds."
2023-02-02 hankyung -
Media Coverage
After recruiting investors, suddenly disappearing – NFT ‘rug pull’ scam in progress.
Rug pull scams, where Non-Fungible Token (NFT) developers suddenly halt their projects and disappear with the investment funds, are on the rise. Over the past few years, multi-level marketing (MLM) scams related to cryptocurrencies have been rampant, and it seems that the realm of crime is now expanding into NFTs. (omitted) According to the legal community, NFT-related fraud crimes have been increasing recently in South Korea as well. Hyeonsu “Elliot” Jin, the managing partner of Decent Law Firm, which specializes in virtual assets, stated, 'We have seen a rise in cases involving NFT rug pull scams recently, and the legal community as a whole is also experiencing an increase in NFT and other virtual asset fraud cases,' reflecting the industry’s sentiment. Attorney Hyeonsu “Elliot” Jin explained, "There are various types of scams, such as developers completely disappearing after the NFT minting process, failing to deliver on promises such as listing on overseas exchanges after announcing grand plans, or vanishing from Discord communities one or two years later." As these crimes increase, the investigative authorities have also begun to respond. On the 13th, the Supreme Prosecutors’ Office held a meeting with specialized prosecutors from local offices across the country to address 'multi-victim crimes affecting ordinary citizens,' and identified 'investment fraud related to cryptocurrency and NFT development' as one of the five major virtual asset crimes, committing to focus on combating these issues. The problem is that since NFT rug pull scams and virtual asset-related frauds are relatively new types of crime, not only the victims but also investigative agencies and courts are struggling to respond effectively. Attorney Hyeonsu “Elliot” Jin remarked, 'Frontline investigators often struggle with understanding MetaMask (an Ethereum-based wallet) and the NFT trading process, making it challenging for both investigative agencies and courts to handle these cases properly.'
2023-01-16 etoday