South Korean financial authorities found that several troubled crypto exchanges failed to properly return user assets during investigation

The Korean financial authorities recently investigated some virtual asset service providers (VASPs) that are closing or suspending operations and found serious violations. During on-site inspections from May 20 to 23, the Financial Intelligence Unit (FIU) and the Financial Supervisory Service found that seven of the 10 VASPs inspected failed to properly return user assets.In addition, three companies had obvious shortcomings in guiding users and only contacted users with assets exceeding 1 million won (about $732). These VASPs have also been criticized for restricting users from withdrawing to overseas exchanges or personal wallets and charging high fees in the process. Korean authorities have clearly stated that they will take strict measures against these violations.