Closed Cryptocurrency Exchange Returns 2 Billion KRW to Users from 4.1 Billion KRW in Deposits

So-called 'Meoktwi' reports have not yet been received

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Gong Byung-sun] Two weeks after domestic cryptocurrency exchanges that did not complete the financial authorities' reporting procedures ceased operations, it has been confirmed that nearly half of the deposits held by these exchanges have been returned to users.

According to the Financial Intelligence Unit (FIU) under the Financial Services Commission on the 10th, out of 4.1 billion KRW in deposits from 13 cryptocurrency exchanges that closed operations by not reporting by the 24th of last month, about 2 billion KRW has been returned to users.

Domestic cryptocurrency exchanges that applied for Information Security Management System (ISMS) certification but did not receive it within the deadline or did not apply at all ceased operations as of the 25th of last month. A total of 36 exchanges closed, including 13 that did not obtain ISMS certification and 23 that did not even apply. Additionally, one new exchange that had not yet started operations also shut down.

The financial authorities announced that as of the 21st of last month, the total amount deposited in unreported exchanges was 4.18 billion KRW. The FIU is monitoring the situation together with investigative agencies due to concerns that unreported exchanges might not return funds upon closure.

The financial authorities stated that although there have been cases of delayed returns due to server issues at some exchanges, there have been no reports yet of users failing to receive their money due to planned bankruptcies or similar reasons.

An FIU official explained, “So far, the deposits in closed exchanges are decreasing sequentially without major problems,” and added, “We are recommending that operators allow at least 30 days to return funds and continuously inform investors of this fact.”