The government of South Korea will be separating the assets of crypt wallets into separate divisions for each crypto company in south Korea. The government wants the crypto companies to maintain the company’s crypto assets separately from the deposits of the user’s stored crypto assets or cryptocurrency funds at all the south Korea-registered crypto platforms.
The Government of South Korea in its recent proposal has issued the demand from all the Cryptocurrency platforms that they will be required to have separate entities in the form of crypto assets and the crypto deposits of the company and users will be able to effectively manage all these users assets like the cryptocurrency deposits or any other form of digital currencies safely and systematically at the companies and the users will not be impacted by any monetary crunch issues like the FTX platform failure like issues in the future.
FTX platform collapsed in recent times after it was not able to work upon the withdrawal request of users and from these 72 hours after the huge number of withdrawal requests from the user the platform collapsed. This happened as the company had not backup up any assets for all the deposits and all the user’s deposits were also transferred by the FTX company for other personal purchases of the company employee.
With the separate fund’s management of crypto companies in the future, The government of South Korea wants to prevent the citizens of South Korea and users of all the cryptocurrency platforms registered in South Korea from all sources issues like FTX in the future. The Government of South Korea issued this announcement on 22nd November This move of South Korea will be able to maintain the security and safety of all of its user’s use of Crypto forms in the future.
What is South Korea’s stake in the Crypto industry?
South Korea is considered a Global hub of the Crypto industry, despite its small geographic identity. South Korea accounts for approximately 30% of all the Global trade in the cryptocurrency world. The citizens of the country are seen to be passionate about digital technology South Korea has maintained state-of-art innovations for flourishing the industry in the country.
South Korea wants to work on prioritizing the safety of its citizens as the country has been seen as a passionate country for cryptocurrency and blockchain technologies hence, South Korea wants to work on the regulation of the Crypto industry in the country. South Korea wants to implement the system in separate entities in one industry where all the digital Assets of the company and the deposit of the customers in the company will be completely segregated in its work structure.