South Korea’s crypto exchange closures lock $13M in investor assets

More than 33,000 crypto investors successful South Korea are presently incapable to entree their assets, which magnitude to astir $13 million, owed to the closure of respective crypto exchanges successful the country, section media outlet The Korea Times reported connected Oct. 14.

According to the report, 14 virtual plus exchanges successful South Korea person either unopen down oregon temporarily suspended operations successful effect to the Virtual Asset User Protection Act. As a result, astir 17.8 cardinal won, oregon astir $12.8 million, successful customers’ integer assets is presently locked connected these platforms.

This accusation comes from caller information released by Representative Kang Min-Kuk of the ruling People Power Party. According to the report, a full of 33,906 South Korean users are seeking to reclaim assets from the affected exchanges. Notably, 11 exchanges person closed, portion 3 others person suspended their services.

Before their closures, these exchanges held a combined full of 17.8 cardinal won successful lawsuit assets, including 1.41 cardinal won successful currency and 16.4 cardinal won successful virtual assets.

Cashierest, which unopen down successful 2023, held the largest stock of lawsuit assets astatine 13 cardinal won, oregon astir $9.4 million. It is followed by ProBit and Huobi, which clasp assets worthy 2.25 cardinal won ($1.6 million) and 579 cardinal won ($419,000), respectively.

In summation to the closed exchanges, astir 30.7 cardinal won (equivalent to $22 million) is tied up successful platforms that person temporarily halted operations. This concern whitethorn importantly summation the fig of customers with frozen assets, though the nonstop interaction remains unclear.

Some of the exchanges progressive see Oasis, with 16.2 cardinal won ($11.7 million), Flata, with 14.35 cardinal won ($10.3 million), and Btrade, with 80 cardinal won ($57,962).

Representative Kang noted that the ongoing thrust for regulatory compliance could further rise these numbers. He reportedly said:

“With the virtual plus marketplace successful a slump and regulatory compliance costs connected the rise, much exchanges are apt to cease oregon suspend operations during the ongoing renewal reappraisal process by the FSC.”

The station South Korea’s crypto speech closures fastener $13M successful capitalist assets appeared archetypal connected CryptoSlate.