According to Yonhap News, 15 virtual asset service providers in South Korea have ceased operations, leaving approximately KRW 22.114 billion in user assets frozen; so far, only KRW 74.52 million has been returned, representing a recovery rate of about 0.3%. Records indicate that these platforms affected approximately 1.9497 million users. In October 2024, DAXA established the Digital Asset Protection Foundation to receive and return assets from defunct platforms, but only six platforms have completed asset transfers. South Korean lawmaker Kang Min-kook noted that current laws do not mandate defunct virtual asset service providers to transfer user assets to the foundation, limiting recovery efforts.
Fifteen virtual asset firms in South Korea have halted operations, with 221.14 billion KRW in user assets frozen.
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Summary
Digital asset news from South Korea reveals that 15 virtual asset firms have ceased operations, freezing 221.14 billion KRW in user assets. Only 745.2 million KRW (0.3%) has been returned to 194.97 million affected users. DAXA established a digital asset protection foundation in October 2024, but only six platforms have completed asset transfers. Real-world asset (RWA) news highlights legal gaps, as MP Kang Min-kook noted that current laws do not require insolvent firms to transfer assets to the foundation, slowing the process.
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