South Korea’s Digital Asset Protection Foundation has launched an initiative to safeguard the rights and interests of crypto users. This effort focuses on recovering customer deposits from shuttered crypto service providers, marking a significant step in strengthening investor trust in the industry. Five operators—Apro Korea, Ten & Ten, Hanbitco, Qbit, and Pay Protocol AG—have transferred deposits to the foundation.
The foundation’s chairman, Kim Jae-jin, emphasized the importance of protecting users affected by the closure of digital asset platforms. He highlighted that the foundation is committed to ensuring these companies meet their customers’ obligations, particularly in securely returning funds.
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Foundation Targets Additional Crypto Operators
The foundation is currently negotiating with up to eight more terminating crypto operators, aiming to finalize agreements by the end of the year. Operators that meet the foundation’s requirements will transfer their customers’ won deposits. These transfers will occur before implementing the real-name verification deposit and withdrawal system, which will be handed over to the foundation for processing.
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Seven companies have been identified as targets for deposit transfers. They include Apro Korea, Qbit, Porisdax Korea Limited, Pobble Gate, Prabang, Peertech, and Korea Digital Exchange. The cumulative deposits from these operators are estimated to total approximately 200 million won.
Secure Asset Return Process
The foundation plans to return virtual assets to verified owners through a rigorous identity verification process. Initially, asset inquiries and return requests will be handled via email. However, starting in January 2025, the process will transition to the foundation’s official website for improved efficiency and accessibility. This systematic approach aims to ensure transparency while minimizing the risks associated with asset recovery.
Enhancing Investor Confidence
The crypto community has welcomed this initiative, recognizing it as a crucial step in addressing issues of fund recovery. Many users have faced significant challenges in retrieving funds from failed crypto projects, eroding trust in the industry. By facilitating the return of assets, the foundation is working to rebuild investor confidence and foster a more secure digital asset ecosystem.
Linking Safeguards to Future Growth
This initiative also sets the stage for more robust protections for crypto users in South Korea. Implementing the real-name verification system and the foundation’s direct involvement in fund management reflect a commitment to greater accountability. These measures will help establish a stronger regulatory framework, ensuring long-term growth and stability in the industry.
A Model for the Global Crypto Community
The Digital Asset Protection Foundation’s efforts may serve as a model for similar initiatives in other countries. By proactively addressing user protection, South Korea sets an example for balancing innovation and security in the cryptocurrency market. This could inspire other jurisdictions to adopt similar measures to safeguard their investors.
Conclusion
The Digital Asset Protection Foundation’s proactive measures underscore its commitment to restoring trust in South Korea’s crypto industry. The foundation is building a more resilient digital asset ecosystem by securing deposits, ensuring asset recovery, and promoting accountability. These steps protect users and pave the way for sustainable growth in the rapidly evolving cryptocurrency market.
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