South Korea’s financial watchdog has reported to local prosecutors a series of cryptocurrency transactions by an opposition party lawmaker. This sparked anger within the country over a potential conflict of interest. Here are the details…
Cryptocurrency crisis in South Korea
Representative Kim Nam-kuk of the Democratic Party of Korea has allegedly withdrawn 800,000 WEMIX tokens from late February to early March in 2022. The transactions were reported to the Financial Services Commission’s Financial Intelligence Unit (FIU). Kim’s WEMIX assets amounted to 6 billion won ($4.5 million) between January and February 2022. The report stated that the FIU classified the withdrawals as suspicious transactions and reported it to the prosecutor’s office.
South Korea implemented the global standard-setting FATF’s travel rule on March 25, 2022, shortly after Kim processed the withdrawals. The travel rule requires exchanges to collect personal data about transactions and notify authorities when they exceed a certain threshold. According to the report, Kim said he did not cash out his tokens and did not violate any laws. South Korea’s Civil Service Code of Ethics does not have any reporting requirements for virtual assets.
Kim co-sponsored an amendment to the Income Tax Act in July 2021 that included a provision to defer taxation of virtual assets. South Korea has postponed its plans to tax income from crypto as well as income from the “transfer or loan” of virtual assets until 2025.
WeMade had trouble in the country
As we reported as Kriptokoin.com, WEMIX was removed from major exchanges in South Korea last year for allegedly reporting false circulating supply figures. The issuing company, WeMade, unsuccessfully challenged the delisting in court. Still, WeMade is signing important partnerships around the world. Most recently, it announced a strategic partnership with Space and Time (SxT), a leader in decentralized data storage. The partnership will allow Wemade to power its blockchain and gaming services with Space and Time’s suite of decentralized developer tools.
Today, Wemade serves more than 20 different play-to-win (P2E) games of all genres, including MIR M and MIR4, the world’s #1 Blockchain game. It runs on the global open blockchain gaming platform WEMIX PLAY, including the blockchain game MIR4. This is Blockchain developer subsidiary WEMIX’s own mainnet, WEMIX 3.0; It emerges as part of the mega ecosystem that includes a wide range of services such as NFTs and DeFi, and the WEMIX coin, which is the bridge that connects all the components of the mega ecosystem.
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