The South Korean Financial Supervisory Authority stated that 70% of cryptocurrency exchanges that have collapsed have failed to repay user funds.

The upcoming Virtual Asset User Protection Law in the country is expected to address this issue by implementing the following regulations on cryptocurrency exchanges:

⚫ Keep transaction records for at least 15 years.

⚫ Separate customer funds from operating funds.

⚫ Store at least 80% of customer assets in cold wallets.