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Post: Wemade Denies Coin Over-Issuance Fraud: Investigation into Compliance with Regulations

Wemade Denies Coin Over-Issuance Fraud: Investigation into Compliance with Regulations

Key Points:

  • South Korean prosecutors are investigating allegations that Wemade, a Web3 game developer, violated local reporting rules by withholding private keys from users.
  • Wemade has denied allegations of coin over-issuance fraud raised by the Seoul Southern District Prosecutors’ Office’s first financial investigation department.
  • In an official announcement, Wemade stated that its digital asset storage system and decentralized exchange are exempt from compliance requirements.
  • Prosecutors are looking into suspicions of unfair profits made by Wemade through potentially circumventing regulations.

Wemade Denies Allegations of Coin Over-Issuance Fraud

Wemade, a South Korean Web3 game developer, has responded to allegations of coin over-issuance fraud brought by the Seoul Southern District Prosecutors’ Office’s first financial investigation department. The company denies any wrongdoing and maintains its innocence in the matter.

Wemade’s Exemption from Compliance Requirements

According to an official announcement made by Wemade, its digital asset storage system, Play Wallet, and its decentralized exchange, PNIX DEX, are exempt from compliance requirements that mandate registration with authorities for virtual asset service providers. Wemade argues that it is not obligated to fulfill these registration requirements.

Investigation into Wemade’s Compliance with Regulations

The South Korean prosecutors conducting the investigation are focusing on allegations that Wemade may have made unfair profits by potentially circumventing regulations that require virtual asset service providers to register with authorities. The investigation aims to determine whether Wemade violated these regulations and if it withheld private keys from users.

Hot Take

This situation highlights the ongoing regulatory scrutiny faced by companies operating in the cryptocurrency and blockchain space, particularly in South Korea. The investigation into Wemade underscores the importance of adhering to regulations and fulfilling compliance requirements to avoid potential legal consequences.

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