WEMIX Listed on Crypto Exchange CoinDCX, Strengthening Presence in India

Chinese financial industry groups have warned that illegal fundraising and fraud are increasingly emerging through stablecoins, airdrops, real-world asset (RWA) tokens, and crypto mining schemes, according to a Dec. 5 notice carried by the state-run Xinhua News Agency.Photo by Othman Alghanmi on UnsplashThe joint warning was issued by seven major bodies: the National Internet Finance Association of China, the China Banking Association, the Securities Association of China, the Asset Management Association of China, the China Futures Association, the China Association for Public Companies, and the Payment & Clearing Association of China. These groups stated that such products are being used to drive speculative trading, pyramid schemes, and other illicit activities that threaten financial stability. They stressed that cryptocurrencies are not legal tender in China and do not share the legal status of fiat currency, further noting that regulators have not approved any RWA tokenization activities. Crypto and RWA offerings prohibitedConsequently, the notice bars member institutions from directly or indirectly providing services related to the issuance or trading of cryptocurrencies or RWA tokens. The associations also urged members to intensify risk warnings and investor education, while encouraging the public to report suspected violations. This industry alert follows the central bank’s recent reiteration of its concerns regarding speculative crypto activity. According to Reuters, the People’s Bank of China (PBOC) last month restated its ban on crypto-related business, citing a resurgence in speculation and compliance gaps in stablecoins that complicate risk management. The central bank plans to tighten enforcement against unlawful operations, reinforcing the blanket ban on crypto transactions and mining imposed in September 2021. Old Bitcoin loan feud resurfacesDespite this restrictive framework, disputes tied to legacy crypto dealings continue to surface. Cryptopolitan reported that a long-running controversy has re-emerged surrounding Li Feng, a co-founder of Moore Threads, a Chinese GPU designer widely viewed as a homegrown rival to Nvidia. According to Cryptopolitan, the scrutiny follows the company's Dec. 5 debut on the Shanghai Stock Exchange, where it raised 8 billion yuan ($1.1 billion). Reportedly, Li faces accusations of failing to repay 1,500 Bitcoin allegedly borrowed from OKX founder Xu Mingxing. Citing a Foresight News post referenced by analyst AB Kuai.Dong on X, the report indicates that Li and angel investor Xue Manzi launched a cryptocurrency in 2017, raising 5,000 ETH. According to the outlet, Li has been accused of failing to repay 1,500 Bitcoin that he purportedly borrowed from OKX founder Xu Mingxing. Xu is said to have raised the issue publicly and sought resolution through legal proceedings in both China and the U.S. However, the legal ambiguity surrounding cryptocurrencies at the time was viewed as a major obstacle to settlement. Li, for his part, has characterized Xu’s contribution as a failed investment. The situation took a constructive turn when Xu reposted AB Kuai.Dong’s post, saying observers should look past old disputes. Xu encouraged a focus on constructive industry growth and stated that debt matters should be left to legal channels, offering goodwill toward fellow entrepreneurs. The timing of the renewed dispute alongside recent industry warnings highlights a consistent focus on risk control and legal clarity within China’s digital asset space. Authorities continue to emphasize investor protection and formal reporting channels to curb speculation, while market participants are increasingly turning to legal avenues to resolve legacy issues. These developments point to a sector still wrestling with unresolved disputes and regulatory gaps, underscoring the need for clearer rules for both regulators and entrepreneurs. 

SEC Opposes Motion to Dismiss Terraform Labs LawsuitLawyers representing the United States Securities and Exchange Commission (SEC) have responded to a motion to dismiss the lawsuit filed by Dentons, the lawyers representing Singapore-based Terraform Labs and its Founder Do Kwon.Photo by Miguel Á. Padriñán on PexelsCourt filingAccording to its arguments, set out in a court filing lodged to the District Court of the Southern District of New York on Thursday, the SEC’s counsel claims that the additional documents provided by Dentons lack sufficient grounds for dismissing the case.It claims that the internal SEC emails presented by Dentons are irrelevant to the current lawsuit. The SEC asserts that the parameters of an “investment contract” are clearly defined by the Howey test and argue that TerraUSD ($UST) should be classified as a security.The reliance by US regulators on the Howey test, a legal test case that implicated citrus grove contracts that date back to 1946, has proven to be controversial. Naturally, there could have been no consideration of the digital innovation that digital assets present today almost eighty years ago. Notwithstanding that, the SEC maintains that the principle factors of what constitutes an investment contract are covered by the case regardless.During the court hearing held on June 15, Dentons submitted supplementary documents to strengthen their motion to dismiss the lawsuit. The primary focus of the hearing was to determine whether the digital assets developed by Terraform Labs should be categorized as securities based on the criteria of an “investment contract.”Dentons maintains that the algorithmic stablecoin, $UST, should not be considered a security and emphasizes its practical purpose rather than its classification as an investment contract. To support their motion, Dentons included additional documents such as the US House Financial Services Committee hearing on digital asset regulation and stablecoin issuance, the SEC’s request for a restraining order against Binance.US, and the Hinman emails from the SEC vs. Ripple lawsuit.Judge to decideThe defense lawyers highlighted what they perceive as a “regulatory gap” in classifying crypto assets as securities, particularly as the US Congress engages in discussions about regulatory frameworks for digital assets and stablecoin issuance. Furthermore, they argued that the SEC is exceeding the scope of securities laws and relying on internal emails related to “investment contracts” to determine the security status.A decision on the motion to dismiss will be arrived at by July 14. Judge Jed Rakoff, who is presiding over the case, will be responsible for that, once he’s weighed up the merits of the arguments presented by both parties.It is noteworthy that Dentons has previously represented Kwon in challenging the US SEC’s subpoena during the investigation of the Mirror Protocol in 2021, as well as in a class-action lawsuit in the Singapore High Court in 2022. The law firm also provides representation to Terraform Labs in other legal matters.In a separate development, the Basic Court in Podgorica, Montenegro, has granted bail for Kwon and former Terra Chief Technology Officer Han Chang-joon. However, Kwon has recently been taken into custody for extradition in Montenegro while the court deliberates on South Korea’s extradition request for the Terra founder.As the legal proceedings continue, the outcome of the motion to dismiss will have significant implications for the ongoing dispute between Terraform Labs, Do Kwon, and the SEC.

WEMIX comes in 9th in CoinMarketCap’s TVL chain rankingSouth Korean gaming publisher Wemade’s layer 1 blockchain network WEMIX has ranked 9th in CoinMarketCap’s list of largest blockchains in crypto ranked by total value locked (TVL). TVL refers to the U.S. dollar value of assets locked or staked on a blockchain. It is a key indicator of liquidity as well as investor and developer participation in a blockchain ecosystem.Photo by GuerrillaBuzz on UnsplashWEMIX’s statsAs of this writing, WEMIX’s TVL is $555.4 million, outpacing 10th place-holder Cardano by over $100 million. Its market capitalization is $1.27 billion. Staking accounts for the largest share of WEMIX’s TVL, which implies a high level of on-chain activity and trust among users in the blockchain’s stability and potential for growth.Expansive ecosystemWEMIX is building a large-scale ecosystem centered on the WEMIX3.0 mainnet, which features popular platforms like the blockchain gaming platform WEMIX PLAY; decentralized autonomous organization (DAO) and NFT platform NILE; and decentralized finance (DeFi) platform WEMIX.Fi.The firm’s more recently developed platform is its joint omnichain network with Chainlink Labs dubbed the Unbound Networking & Accelerating Growth Initiative, or “unagi,” which will serve as an interoperable Web3 gaming platform linking multiple blockchains. It is expected to boost WEMIX’s growth into an even larger mega-ecosystem.