According to a study by the Financial Supervisory Service of South Korea (FSS) and the Financial Intelligence Unit of South Korea, seven out of ten crypto exchanges that closed in the country were unable to return money to customers.
The report indicates that six of the seven cryptocurrency exchanges that did not return money to customers did not notify them in advance of their plans to stop or suspend operations. Even if problem sites are ready to return digital assets to users, only one or two employees are assigned to manage this process, which causes extreme inconvenience and significantly delays payments.
Researchers have found that South Korea is the third largest cryptocurrency market in the world. In the first half of 2023, more than 6 million Koreans (more than 10% of the country's population) traded cryptocurrencies on registered exchanges. In addition to major cryptocurrencies such as bitcoin, Korean traders often invest in little-known and risky crypto assets. This trend increases the risk of financial losses for investors, the agencies fear.
Therefore, the FSS stated the need to create a reliable legal framework to protect investors and called for stricter supervision of the crypto industry. To develop financial recommendations, the FSS works closely with other regulators, with a particular focus on preventing illegal activity in the emerging digital asset market.
In April, the South Korean authorities began discussing the possibility of creating a department to investigate cryptocurrency crimes. In the same month, the Financial Services Commission of South Korea (FSC) promised to tighten the requirements for listing altcoins on local trading platforms.
The report indicates that six of the seven cryptocurrency exchanges that did not return money to customers did not notify them in advance of their plans to stop or suspend operations. Even if problem sites are ready to return digital assets to users, only one or two employees are assigned to manage this process, which causes extreme inconvenience and significantly delays payments.
Researchers have found that South Korea is the third largest cryptocurrency market in the world. In the first half of 2023, more than 6 million Koreans (more than 10% of the country's population) traded cryptocurrencies on registered exchanges. In addition to major cryptocurrencies such as bitcoin, Korean traders often invest in little-known and risky crypto assets. This trend increases the risk of financial losses for investors, the agencies fear.
Therefore, the FSS stated the need to create a reliable legal framework to protect investors and called for stricter supervision of the crypto industry. To develop financial recommendations, the FSS works closely with other regulators, with a particular focus on preventing illegal activity in the emerging digital asset market.
In April, the South Korean authorities began discussing the possibility of creating a department to investigate cryptocurrency crimes. In the same month, the Financial Services Commission of South Korea (FSC) promised to tighten the requirements for listing altcoins on local trading platforms.
