South Korea’s FSC approves foundation to safeguard users’ assets from failed crypto exchanges.
The new foundation will manage deposits via banks and return crypto from defunct exchanges.
Ten out of 22 South Korean crypto exchanges have shut down, with three temporarily paused.
South Korea’s Financial Services Commission (FSC) has given the green light to a foundation designed to protect users’ crypto assets. The Digital Asset Protection Foundation will safeguard assets in the event of cryptocurrency exchange failures.
This move comes after several exchanges in the country closed, raising concerns about the security of user deposits. The foundation is one part of a broader effort to ensure the return of assets to users from defunct exchanges.
The foundation will operate under the Digital Asset eXchange Alliance (DAXA), a consultative group of South Korean crypto exchanges. It will focus on protecting assets held in crypto exchanges that fail. User deposits will be managed by banks, while cryptocurrencies will be handled by fiat-to-crypto exchanges. This structure will provide increased oversight and security for users.
Ten of South Korea’s 22 crypto …
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