South Korea’s crypto exchange closures lock $13M in investor assets South Korea’s crypto exchange closures lock $13M in investor assets
South Korean lawmaker revealed that the locked fund numbers could rise if platforms that have temporarily halted operations are included.
2 min read
Updated: Oct. 24, 2024 at 3:13 pm UTC
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More than 33,000 crypto investors in South Korea are currently unable to access their assets, which amount to around $13 million, due to the closure of several crypto exchanges in the country, local media outlet The Korea Times reported on Oct. 14.
According to the report, 14 virtual asset exchanges in South Korea have either shut down or temporarily suspended operations in response to the Virtual Asset User Protection Act. As a result, approximately 17.8 billion won, or about $12.8 million, in customers’ digital assets is currently locked on these platforms.
This information comes from recent data released by Representative Kang Min-Kuk of the ruling People Power Party. According to the report, a total of 33,906 South Korean users are seeking to reclaim assets from the affected exchanges. Notably, 11 exchanges have closed, while three others have suspended their services.
Before their closures, these exchanges held a combined total of 17.8 billion won in customer assets, including 1.41 billion won in cash and 16.4 billion won in virtual assets.
Cashierest, which shut down in 2023, held the largest share of customer assets at 13 billion won, or approximately $9.4 million. It is followed by ProBit and Huobi, which hold assets worth 2.25 billion won ($1.6 million) and 579 million won ($419,000), respectively.
In addition to the closed exchanges, about 30.7 billion won (equivalent to $22 million) is tied up in platforms that have temporarily halted operations. This situation may significantly increase the number of customers with frozen assets, although the exact impact remains unclear.
Some of the exchanges involved include Oasis, with 16.2 billion won ($11.7 million), Flata, with 14.35 billion won ($10.3 million), and Btrade, with 80 million won ($57,962).
Representative Kang noted that the ongoing drive for regulatory compliance could further raise these numbers. He reportedly said:
“With the virtual asset market in a slump and regulatory compliance costs on the rise, more exchanges are likely to cease or suspend operations during the ongoing renewal review process by the FSC.”
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