South Koreas Financial Supervisory Commission Supports Nonprofits in Safeguarding Crypto Assets After Exchange Shutdowns

Coin World News Report:
The Financial Services Commission (FSC) of South Korea announced today (Wednesday) that it has approved the establishment of a non-profit organization aimed at protecting virtual assets for consumers in the event of cryptocurrency exchange closures.
FSC establishes Asset Protection Foundation
The FSC stated that the organization, tentatively named the Digital Asset Protection Foundation, will be responsible for ensuring that virtual assets are safely returned to their rightful owners from closed exchanges.
The commission stated that it has been continuously working to ensure the security of user assets in the event of the following situations:
Cryptocurrency exchanges
Cryptocurrency exchanges
A cryptocurrency exchange is an online platform that supports the exchange of various currencies for cryptocurrencies or digital assets. Compared to traditional financial exchanges, the core function of a cryptocurrency exchange is to enable and encourage the buying and selling of cryptocurrencies. This is achieved by creating a stable trading environment for traders nested around the world. Sometimes, cryptocurrency exchanges may also be referred to as digital currency exchanges (DCE) f
Cryptocurrency exchanges
Cryptocurrency exchanges
A cryptocurrency exchange is an online platform that supports the exchange of various currencies for cryptocurrencies or digital assets. Compared to traditional financial exchanges, the core function of a cryptocurrency exchange is to enable and encourage the buying and selling of cryptocurrencies. This is achieved by creating a stable trading environment for traders nested around the world. Sometimes, cryptocurrency exchanges may also be referred to as digital currency exchanges (DCE) f
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To cease operations or be forced to close.
The FSC stated, “However, concerns exist regarding asset protection as the process of returning assets often takes a long time due to operators of closed exchanges being unable to be contacted or users failing to claim their assets.”
Just In: South Korea’s Financial Regulatory Commission approves non-profit organization to protect cryptocurrency assets after exchange closures. The Digital Asset Protection Foundation aims to ensure the safe return of assets from closed exchanges. 10 out of 22 exchanges nationwide have closed. Launch expected next month.
–RWA Pulse – via RWA.io (@RWA_Pulse)
September 25, 2024
Meanwhile,
South Korea Delays Implementation of Taxes
According to The Wall Street Journal, profits from cryptocurrencies will be exempt from taxes until 2028
Financial giants
The government originally intended to impose a 20% tax on profits exceeding 2.5 million Korean won ($1875) starting from January 2023.
This deadline was initially postponed to 2025, and now it has been delayed to 2028. The ruling Democratic Party emphasizes the need for a comprehensive regulatory framework before implementing any taxes to ensure market stability and safety.
Ten exchanges closed
Out of the 22 cryptocurrency exchanges operating in the country, 10 have already closed, and 3 have temporarily ceased operations. The FSC noted that it is a challenge to allocate resources from closed exchanges to protect virtual assets and return them to customers.
To address these issues, the Digital Asset Exchange Association (DAXA) has been advocating for the establishment of an organization dedicated to protecting users’ virtual assets from exchange failures.
The FSC stated that the foundation could potentially launch as early as next month. It stated that the establishment of the organization aims to provide higher security for users’ assets while reducing potential market chaos after closures.
Exchange
Exchange
Exchanges are referred to as markets that support the trading of derivatives, commodities, securities, and other financial instruments. Generally, exchanges can be accessed through digital platforms and sometimes through physical addresses where investors organizations trade. One of the primary responsibilities of exchanges is to maintain honest and fair trading practices. These help ensure the effective distribution of secure rates supported by the exchange.
Exchange
Exchange
Exchanges are referred to as markets that support the trading of derivatives, commodities, securities, and other financial instruments. Generally, exchanges can be accessed through digital platforms and sometimes through physical addresses where investors organizations trade. One of the primary responsibilities of exchanges is to maintain honest and fair trading practices. These help ensure the effective distribution of secure rates supported by the exchange.
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