Universities Face Hurdles as WEMIX Delisting Impacts Unsellable Donations

# Nonprofit Institutions Face Challenges Despite New Government Guidelines on Digital Asset Transactions The recent release of government guidelines allowing nonprofit organizations to engage in digital asset trading has introduced a significant challenge for universities holding cryptocurrency donations. Despite the policy's aim for regulatory clarity, the delisting of WEMIX (WEMIX) on the announcement day has complicated institutional efforts to convert these digital assets into cash. On November 2, South Korea's Financial Services Commission issued guidelines that will enable nonprofit organizations to trade digital assets starting June next year. The trading is limited to digital tokens listed on the Korean won (KRW) market and traded across three or more cryptocurrency exchanges. Additionally, nonprofits are required to establish pre-screening committees to assess donated assets. In response, banks and cryptocurrency exchanges have begun developing the necessary IT systems. However, universities are struggling despite the policy update. Five universities, including Seoul National University, received donations of WEMIX tokens valued at approximately KRW 1 billion three years ago. Their inability to liquidate the tokens has left them with stagnant assets. The situation deteriorated when WEMIX encountered its second delisting crisis right before the guideline announcement, resulting in its ultimate removal from exchanges on the announcement day, thus eliminating any feasible way for universities to convert their holdings into fiat currency. Currently, only five exchanges in South Korea—Upbit, Bithumb, Coinone, Korbit, and GOPAX—operate a KRW market under regulatory approval with verified bank accounts. All are members of the Digital Asset eXchange Alliance (DAXA), and WEMIX's subsequent delisting was executed in line with DAXA's collective decision. To resume trading of WEMIX on these platforms, the token would need to seek relisting through a new exchange. The push for regulatory reforms in this sector began last year, when Seoul National University formally appealed to both the Ministry of Education and the Financial Services Commission to allow the liquidation of donated cryptocurrencies. In February, the government committed to gradually enabling nonprofit organizations to participate in digital asset markets, leading to the latest guideline updates. Despite this, universities have yet to see any substantial benefits from the changes. A spokesperson from Seoul National University noted, "There are no ongoing discussions or measures under consideration regarding the disposition of our WEMIX holdings." Simultaneously, WEMIX disagreed with DAXA's delisting decision. Kim Seok-hwan, CEO of WEMIX, commented, "We regret this outcome despite providing thorough explanations to DAXA. We plan to file an injunction lawsuit to contest the decision."