Wemade has reported five domestic cryptocurrency exchanges, including Upbit and Bithumb, to the Fair Trade Commission (FTC) for alleged unfair collaborative practices by the Digital Asset Exchange Association (DAXA). Wemade claims that the exchanges’ decision to cease support for WEMIX trading constitutes an unfair collaborative act prohibited under the Monopoly Regulation and Fair Trade Act, as it disrupts business activities and substantially restricts competition in specific trade areas.
Wemade argues that a de facto collusion structure has formed around the two major exchanges, which account for approximately 98% of the domestic virtual asset exchange market share. This led to decisions on whether to terminate WEMIX’s trading support being pre-discussed and jointly decided, they claim.
The company also contends that the exchanges have not provided sufficient reasons for their decisions to delist WEMIX. Although these decisions appeared to be made independently by each exchange over the years, Wemade highlights that the simultaneous decisions and similar announcement methods indicate clear joint action. The company criticizes the lack of transparency in decision-making criteria, procedural fairness, and inadequate opportunities for project explanations.
Previously, DAXA member exchanges, including Upbit and Bithumb, decided to delist WEMIX after it was designated as a cautionary trading item. This followed a hacking incident in February, resulting in 9 billion KRW worth of WEMIX coins being stolen and not disclosed until March. In response, Wemade filed for an injunction to suspend the delisting with the Seoul Central District Court, excluding Upbit. The first hearing for this injunction is scheduled for today.