TechFlow news, according to Coinpedia, South Korean lawmaker Kang Min-kuk disclosed on October 14, 2024, that 14 cryptocurrency exchanges have shut down or suspended operations due to the new regulations under the "Virtual Asset User Protection Act," leaving over 33,000 investors unable to retrieve approximately $13 million in assets.
Kang Min-kuk revealed that the situation could worsen, with around 30.7 billion KRW (about $22 million) potentially stranded on suspended platforms. Among them, the exchange Cashierest holds the largest amount—13 billion KRW (approximately $9.4 million).
Data from the Financial Services Commission (FSC) of South Korea shows that as of the end of September 2024, there were 35 Virtual Asset Service Providers (VASPs) nationwide. With increasing regulatory pressure, industry expectations suggest more exchanges may be forced to close, raising concerns over investor fund security.
