Millions left in limbo as Korean crypto exchanges shut down amid regulations: report

More than a dozen cryptocurrency exchanges in South Korea have closed or suspended operations in 2024, leaving nearly $13 million in assets unowned by almost 34,000 subscribers.

As South Korea implements the Virtual Asset User Protection Act, more than a dozen crypto exchanges have closed in 2024, leaving customers with 17.8 billion won ($12.8 million) in inaccessible assets.

According to data from the Financial Services Commission, 11 exchanges permanently halted their operations, while three other exchanges temporarily suspended their services in late September, The Korea Times reported.

As a result, the report states that approximately 34,000 crypto holders are currently trying to retrieve cash and cryptocurrency from closed exchanges, which hold a total of 17.8 billion won, including 1.41 billion won in cashable assets and 16.4 billion won in crypto. .

South Korean crypto exchange Cashierest, which was closed in late 2023, emerged as the largest custodian of client assets with 13 billion won; It was followed by ProBit with 2.25 billion won and HTX (formerly Huobi) with 579 million won. Meanwhile, about 30.7 billion won is locked in three exchanges that have temporarily halted their operations: Oasis (16.2 billion won), Flata Exchange (14.35 billion won), and Btrade (80 million won).

Representative Kang Min-kuk of the ruling People Power Party said that more trading platforms “are likely to cease or suspend their operations during the ongoing renewal review process by the FSC” as the market is in recession and compliance costs are rising. Kang admitted that although financial authorities have issued guidelines to facilitate the return of user assets, successfully recovering all remaining funds may be difficult.