More than 33,000 crypto investors in South Korea are currently unable to access approximately $13 million worth of assets due to the closure of multiple cryptocurrency exchanges in South Korea, local media outlet Korea Times reported. Reported on May 14th.
According to the report, 14 virtual asset exchanges in South Korea have closed or temporarily suspended operations in response to the Virtual Asset User Protection Act. As a result, approximately 17.8 billion won, or approximately $12.8 million, of customers’ digital assets are currently locked on these platforms.
This information comes from recent data released by Kang Min-kuk, a lawmaker from the ruling People’s Power Party. According to the report, a total of 33,906 Korean users have sought to recover their assets from the affected exchanges. In particular, 11 exchanges were shut down and three others suspended their services.
Before the closure, these exchanges held a total of 17.8 billion won in customer assets, including 1.41 billion won in cash and 16.4 billion won in virtual assets.
Cashier’s Rest, which closed in 2023, accounted for the largest share of customer assets at 13 billion won (approximately $9.4 million). This 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, approximately 30.7 billion won (equivalent to $22 million) is stuck on platforms that have temporarily suspended operations. This situation could significantly increase the number of customers whose assets are frozen, although the exact impact is still unclear.
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).
Rep. Kang noted that continued regulatory compliance drives could push these numbers higher. He reportedly said:
“With the crypto asset market in decline and regulatory compliance costs rising, more exchanges are likely to cease or cease operations during the ongoing renewal review process by the FSC.”
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