The Financial Services Commission of South Korea Backs NonProfit Organizations in Safeguarding Cryptocurrency Assets Following Exchange Closure

CoinJiawei 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 the safe return of virtual assets from closed exchanges to their rightful owners.
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. Unlike 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 embedded worldwide. Cryptocurrency exchanges are sometimes referred to as digital currency exchanges (DCE).
Cryptocurrency exchanges
Cryptocurrency exchanges
A cryptocurrency exchange is an online platform that supports the exchange of various currencies for cryptocurrencies or digital assets. Unlike 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 embedded worldwide. Cryptocurrency exchanges are sometimes referred to as digital currency exchanges (DCE).
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Cease operations or be forced to close.
The FSC pointed out, “However, concerns exist regarding asset protection, as the process of returning assets often takes a long time due to the failure to contact (closed) exchange operators or users’ failure to claim their assets.”
Just started: The Financial Supervisory Commission of South Korea has approved a non-profit organization to protect cryptocurrency assets after the closure of exchanges. 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 postpones implementation of taxation
According to The Wall Street Journal, the profits from cryptocurrencies will be taxed until 2028.
Financial giants
The government initially planned to impose a 20% tax on profits exceeding 2.5 million Korean won ($1,875) starting from January 2023.
This deadline was initially postponed to 2025, and now it has been further delayed to 2028. The ruling Democratic Party emphasized the need for a comprehensive regulatory framework to ensure market stability and safety before implementing any taxation.
Ten exchanges closed
Out of the 22 cryptocurrency exchanges operating in the country, 10 have already closed, and 3 have temporarily halted operations. The FSC noted that it is a challenge to expect the closed exchanges to allocate resources 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 be launched as early as next month. It expressed that the establishment of the organization aims to provide higher security for users’ assets while reducing potential market chaos after closures.
Exchange
Exchange
An exchange is a marketplace that supports 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 or organizations trade. One of the primary responsibilities of an exchange is to maintain honest and fair trading practices. These help ensure the effective allocation of secure rates supported by the exchange.
Exchange
Exchange
An exchange is a marketplace that supports 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 or organizations trade. One of the primary responsibilities of an exchange is to maintain honest and fair trading practices. These help ensure the effective allocation of secure rates supported by the exchange.
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