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South Korea Tidies Disclosure Requirements After WEMIX Delisting

South Korean regulators are working with the country's Digital Asset eXchange Alliance (DAXA) to enforce tighter disclosure requirements on crypto providers.

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South Korea’s financial watchdog has called for a unified system for mandatory information disclosure from digital asset providers. The development comes after a string of bankruptcies across the crypto industry as well the delisting of the WEMIX token from the country's Digital Asset eXchange Alliance (DAXA).

The proposal was first introduced during a meeting of the government’s Digital Assets Committee, in which officials from Financial Supervisory Service and members discussed the need to implement tighter disclosure requirements on crypto bourses.

In addition, the country’s Digital Asset eXchange Alliance (DAXA), a joint consultative body launched by South Korea’s top five crypto exchanges including Upbit, Bithumb, Coinone, Korbit and GOPAX, also announced that it is working on a common standard for crypto exchanges for the token delisting process.

Last month, DAXA delisted WEMIX, the native coin of Microsoft-backed blockchain gaming company WeMade, after false reports of its circulation numbers emerged.

Read more: South Korea’s WeMade Expands Offerings, Sees Singapore as “Perfect Sanctuary”

Tightening grip

On Thursday, it was reported that South Korea's Ministry of Justice is planning to track cryptocurrency transactions, in a bid to curb money laundering activities and recover funds linked to illicit sources.

According to local media outlet khgames, the country's Ministry of Justice is set to introduce a "Virtual Currency Tracking System,” which can be used to "monitor transaction history, extract information related to transactions and check the source of funds before and after remittance."

Earlier this month, the country's Supreme Court ordered Bithumb to pay damages to users who suffered losses during the exchange's service outage.