More than a dozen crypto exchanges in South Korea have closed or suspended operations in 2024, leaving nearly $13 million in assets unclaimed by almost 34,000 subscribers.

As South Korea enforces the Virtual Asset User Protection Act, over twelve crypto exchanges have shut down in 2024, rendering customers unable to access 17.8 billion won ($12.8 million) in assets. According to data from the Financial Services Commission, 11 exchanges have permanently ceased operations, while three others have temporarily suspended services as of late September.

Impact on Crypto Owners

Nearly 34,000 crypto owners are now seeking to reclaim cash and crypto from the closed exchanges. These exchanges collectively hold 17.8 billion won, which includes 1.41 billion won in cashable assets and 16.4 billion won in various cryptocurrencies.

Exchanges Holding the Most Assets

Among the closed exchanges, South Korean crypto exchange Cashierest, which shut down in late 2023, emerged as the largest custodian of customer assets, holding 13 billion won. This is followed by ProBit with 2.25 billion won and HTX (formerly Huobi) with 579 million won.

Temporarily Suspended Exchanges

Approximately 30.7 billion won remain locked in three exchanges that have temporarily halted operations:

  • Oasis: 16.2 billion won
  • Flata Exchange: 14.35 billion won
  • Btrade: 80 million won

Future of Crypto Exchanges in South Korea

Rep. Kang Min-kuk of the ruling People Power Party stated that more trading platforms are “likely to cease or suspend their operations during the ongoing renewal review process by the FSC.” He attributed this to the market slump and rising regulatory compliance costs. While financial authorities have issued guidelines to facilitate the return of user assets, achieving the successful recovery of all remaining funds may be challenging, Kang admitted.

“More trading platforms are likely to cease or suspend their operations during the ongoing renewal review process by the FSC,” said Rep. Kang Min-kuk.

For more news and updates on the cryptocurrency market, stay tuned to Global Crypto News.

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