South Korea’s Digital Asset Protection Foundation has officially commenced operations to protect cryptocurrency users impacted by the closure of several exchanges in the country.
According to local reports, the Foundation is working to complete the transfer of assets from up to eight closed crypto companies by the end of the year. So far, it has taken control of digital assets belonging to approximately 40,000 users from five defunct platforms: Apro Korea, Ten and Ten, Hanbitco, Qbit, and Pay Protocol.
The Foundation will also oversee around 200 million won in user deposits from seven additional firms, including Porisdax Korea Limited, Pobble Gate, Prabang, Peertech, and Korea Digital Exchange. These funds primarily consist of Korean won deposits held before the 2021 revision of the Specific Financial Information Act.
In addition, the Foundation manages won deposits previously held by non-won exchanges before the implementation of South Korea’s real-name verification system for deposits and withdrawals. Users can recover their virtual assets and funds by applying for and successfully completing identity verification.
For now, asset inquiries and return applications are being handled via email. However, the Foundation plans to launch a dedicated website in January 2025 to streamline these services.
Kim Jae-jin, chairman of the Foundation, reaffirmed its commitment to safeguarding users. He stated that the Foundation would assist closed exchanges and firms in meeting their obligations to their customers and closing their businesses in the industry.
The initiative follows the shutdown or suspension of over a dozen cryptocurrency exchanges in South Korea in 2024, which left nearly 34,000 users with unclaimed assets totalling 17.8 billion won (about $13 million). According to local reports, the unclaimed funds include 1.41 billion won in fiat and 16.4 billion won in cryptocurrencies.
The Financial Services Commission (FSC) backed the creation of this nonprofit foundation to secure asset recovery, enhance user protection, and minimize market disruptions caused by exchange closures.
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