In South Korea, a fresh project is in progress to help bitcoin users retrieve their money from closed-off exchanges. The Digital Asset User Protection Foundation will help to manage the return of assets held in closed exchanges, approved by the Financial Services Commission (FSC).
With FSC certification, this foundation anticipates starting activities in October. The action follows concerning numbers: out of 22 bitcoin exchanges running across the nation, 10 have closed and three have paused their activities, raising many customers’ financial concerns.
The foundation’s main goals are to give people a methodical methodology for asset protection. Many times, these interactions contain the private keys to users’ wallets, which calls grave questions about the security of their money. The foundation intends to work closely with the exchanges and help to move user funds thereby ensuring appropriate management and safe returns.
Following advice from the exchanges, the foundation will take care of users’ virtual assets and money. An operating bitcoin exchange will handle the virtual assets; a designated bank will oversee cash deposits. After that, we will let users know about asset reclaiming procedures.
The foundation will be governed by an operational committee made of industry professionals, government agencies, officials from the partnering bank and exchange, and The government clearly supports this project as it seeks to guarantee a seamless consultation procedure for moving consumers’ assets from failed exchanges to the foundation.
Given current events, the building of this foundation fits South Korea’s Virtual Asset User Protection Act passed on July 19. This rule requires exchanges to keep consumer money in separate bank accounts and guard virtual assets from their own operational hazards.
It marks a major step towards strengthening security and confidence inside South Korea’s bitcoin market as the foundation is ready for launch. Signing their dedication to create a stable legal framework for digital assets, the government has also postponed the implementation of a cryptocurrency tax until 2028.
