New regulations at South Korean cryptocurrency exchanges lead to $13 million of investor funds being frozen

ChainCatcher news, according to Coinpedia, South Korean lawmakers have disclosed that due to the new regulations of the "Virtual Asset User Protection Act," 14 cryptocurrency exchanges have closed or suspended operations, resulting in over 33,000 investors being unable to retrieve approximately $13 million in assets.

According to Kang Min-guk, the situation may further deteriorate, with about 30.7 billion won ($22 million) potentially trapped on the suspended platforms. Among them, Cashierest exchange holds the most assets, amounting to 13 billion won (approximately $9.4 million).

As regulatory pressure increases, the industry expects that more exchanges may be forced to close, raising concerns about the safety of investors' funds.