"Exchange Holds Delisting Power: DAXA Clarifies Amid WEMIX Dispute"

# DAXA Clarifies Role Amid WEMIX Delisting Dispute, Emphasizing Individual Exchange Autonomy The Digital Asset eXchange Alliance (DAXA), a consortium of South Korea's digital asset exchanges, has underscored that delisting decisions are solely the discretion of individual exchanges. DAXA clarified that it does not interfere in such decisions. This comes amid the recent controversy over the secondary delisting of WEMIX by exchanges like Bithumb, Coinone, Korbit, and GOPAX. In a statement on the 15th, DAXA noted, "DAXA does not involve itself in member firms' decisions regarding trading support," and added, "To protect users effectively, each exchange must retain the discretion to determine trading support. This authority has been reaffirmed several times through court rulings." # Legal Challenges from WEMIX Foundation This statement follows allegations by WEMIX Foundation, the issuer of the WEMIX token, claiming that DAXA had unilaterally decided on delisting without sufficient discussion or clear grounds. On November 9, Wemade, the company behind WEMIX, filed an injunction with the Seoul Central District Court to suspend the delisting decisions of the four exchanges involved. In an emergency press conference on November 3, Kim Suk-hwan, CEO of WEMIX Foundation, criticized DAXA's perceived lack of transparency and standardized criteria for delisting, stating, "The absence of clear delisting standards and the arbitrary nature of these decisions are the main issues. Not disclosing the criteria or discussions surrounding delistings could lead to significant damage for investors due to abuse or capricious use of discretion." # DAXA’s Response to Allegations DAXA explained that its statement aimed to prevent misunderstanding as WEMIX Foundation portrayed the delisting authority as residing solely within DAXA. The consortium emphasized, "As a principle, DAXA does not respond to individual token-related issues to avoid market impact. However, the persistent allegations that 'DAXA decides delistings' compelled us to address the matter and clarify any misconceptions." # Collaborative Measures and Exchange Independence DAXA outlined two areas of collaborative efforts among member exchanges. First, it noted that when multiple member exchanges support trading for the same asset, they engage in joint communications with the token issuer and share necessary information collectively. This aims to eliminate any information asymmetry that could arise if an issuer selectively provides data to specific exchanges. Second, DAXA stated, "Exchanges that offer trading support for the same token announce their respective decisions simultaneously. While the outcomes may be consistent or vary depending on each exchange’s individual criteria, aligning the timing of these announcements helps minimize market confusion." Reiterating its position, DAXA concluded, "These two areas constitute the entirety of our collaborative approach. Ultimately, the responsibility for communication and decision-making lies exclusively with each individual exchange."