Financial Authorities Mandate Guidelines for VASP Closures to Protect User Assets

The Financial Services Commission (FSC) and Financial Supervisory Service (FSS) are requiring guidelines for closing Virtual Asset Service Providers (VASPs) to protect users’ assets. Inspections revealed several exchanges, including Huobi Korea and Probit, shut down recently.

To safeguard users, the FSC will amend the Specified Financial Information Act to ensure VASPs have business closure procedures, prevent excessive withdrawal fees, and ensure proper asset returns. Closed VASPs’ contact information will be posted on the FIU’s website.

VASPs must support asset withdrawals for at least three months post-closure without excessive fees. Unreturned assets after this period must be securely stored and reported weekly to authorities. The FIU will enforce compliance and notify investigative agencies of any illegal activities.

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