The Digital Asset User Protection Foundation will be set up by the DAXA self-regulatory organization and receive support from financial authorities.
South Korean customers of cryptocurrency exchanges will have a new ally in the Digital Asset User Protection Foundation, which is being set up to ease the return of funds stuck in defunct exchanges.
South Korea’s Financial Services Commission (FSC) approved an initiative by the self-regulatory Digital Asset Exchange Joint Consultative Group (DAXA) to create the foundation. The foundation may begin activities in October.
The FSC stated that 10 of the 22 cryptocurrency exchanges in South Korea have closed and another three have suspended operations, leading to concerns about the return of users’ funds held by the nonfunctioning exchanges.
