South Korea has halted operations of 15 virtual asset service providers, impacting approximately 1.949 million users and freezing assets worth KRW 22.1 billion (USD 14.87 million). Data from the Financial Supervisory Service, obtained by National Assembly member Kang Min-guk, indicates that only six operators have transferred user assets to the Digital Asset Protection Foundation, covering 1.92 million users and KRW 2.36 billion (USD 15.9 million).
Despite these efforts, only 131 users have successfully recovered assets through the foundation, amounting to KRW 74.52 million (USD 50,000), representing just 0.3% of the total frozen assets. Kang highlighted the lack of legal requirements for defunct service providers to transfer user assets and called for accelerated legislative reforms to enhance user protection measures.
South Korea Freezes $14.87M in User Assets as 15 Crypto Firms Halt Operations
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