According to ME News, on May 12 (UTC+8), data obtained by South Korean National Assembly member Kang Min-guk from the Financial Supervisory Service revealed that, as of May 4, a total of 15 virtual asset service providers in South Korea had ceased operations, affecting approximately 1.949 million users and freezing assets worth KRW 22.1 billion (USD 14.87 million). Of these, 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). Only 131 users—0.006% of all affected users—have successfully recovered assets through the foundation, totaling KRW 74.52 million (USD 50,000), or just 0.3% of the total frozen assets. Kang emphasized that current law does not mandate defunct service providers to transfer user assets to the foundation, lacks enforcement mechanisms, and that the foundation has not actively promoted the asset recovery application process. He urged the Financial Supervisory Service to accelerate the second phase of legislative reforms to strengthen user protection measures. (Source: ChainCatcher)
South Korea halts 15 virtual asset providers, freezes 22.1 billion won in user assets, recovery rate at 0.3%
KuCoinFlashShare
Summary
Digital asset news from South Korea reveals that 15 virtual asset providers have ceased operations, freezing 221 billion won ($14.87 million USD) in user assets. As of May 4, only six operators transferred assets to the Digital Asset Protection Foundation, covering 1.92 million users and 23.6 billion won ($15.9 million USD). Just 131 users have recovered assets, totaling 74.52 million won ($50,000 USD), or 0.3% of the frozen funds. Real-world asset (RWA) news highlights the absence of legal enforcement for asset transfers, prompting calls for stronger user protection laws.
Source:Show original
Disclaimer: The information on this page may have been obtained from third parties and does not necessarily reflect the views or opinions of KuCoin. This content is provided for general informational purposes only, without any representation or warranty of any kind, nor shall it be construed as financial or investment advice. KuCoin shall not be liable for any errors or omissions, or for any outcomes resulting from the use of this information.
Investments in digital assets can be risky. Please carefully evaluate the risks of a product and your risk tolerance based on your own financial circumstances. For more information, please refer to our Terms of Use and Risk Disclosure.