(Photo= Yonhap news)

 

[Alpha Biz= Reporter Kim Sangjin] Wemade's cryptocurrency wallet service, Play Wallet, is withdrawing from the domestic market amid suspicions of failure to report as a virtual asset operator.

According to the gaming industry on the 29th, Wemade's Singapore-based subsidiary, WEMIX Foundation, announced on the 24th that it would block access from Korean IP addresses to Play Wallet and exclude Korean language support.

The update is scheduled to take effect on June 25th, and access for asset withdrawals within Play Wallet will be supported until September 25th.

Although WEMIX Foundation did not specify the exact reason, the virtual asset industry points to recent suspicions that Play Wallet was involved in unreported virtual asset operations, leading to investigations by authorities.

Under specific Financial Information Unit (FIU) regulations, virtual asset wallet or exchange services must report to the FIU as virtual asset operators if they provide services without issuing private keys to users.

The Digital Asset Exchange Association (DAXA), composed of domestic cryptocurrency exchanges, reported to the Financial Intelligence Analysis Unit (FIU) earlier this year that Wemade operated Play Wallet and the virtual asset exchange 'Phoenix DEX' by not providing private keys.

It has also been reported that the Seoul Southern District Prosecutors' Office recently assigned a team to investigate suspicions of unreported operations. The office is investigating various cases, including allegations of fraud against Wemade's Vice Chairman, Jang Hyun-guk, by investors in WEMIX and allegations of large-scale cryptocurrency transactions involving lawmaker Kim Nam-guk.

 

 

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