South Korea's Crypto Firm Delio Temporarily Suspends Withdrawals

The South Korea-based digital asset company, Delio has temporarily suspended withdrawals over what it termed as a 'sharp increase in market volatility and confusion among investors'. This was after Haru Invest, another digital asset company, suspended deposits and withdrawals.

"In this situation, to safely protect the assets of customers currently in custody, Delio will inevitably suspend withdrawals as of June 14, 2023, 18:30, until the above situation and its aftermath are resolved," the statement, originally written in Korean and translated using Google Translate, mentioned.

Heightened Volatility in the Sector

Haru Invest announced on Tuesday that it was suspending withdrawals from its platform because one of its consignment operators had provided a management report containing false information. The company offers a double-digit yield on digital assets, including Bitcoin (BTC) and Ethereum (ETH).

Delio has, however, assured its customers that it would protect their assets as it tries to address the situation. Furthermore, the company said it would inform its users of any further steps. Delio was founded in 2018 and currently holds about $1 billion in BTC, $200 million in ETH, and approximately $8 billion worth of altcoins, according to the data on its website.

Although the disruptions in the two companies are at a smaller scale, it reflects a wider market turmoil in the South Korean digital asset space. The turmoil escalated in 2022 when a South Korean court issued an arrest warrant against Terraforms Labs' Do Kwon after the cryptocurrencies he created collapsed and caused millions of losses to investors.

Push for Crypto Regulations

The volatility in the digital asset space has pushed South Korean regulators to actively engage in regulating the sector to protect investors against fraudulent schemes. In the latest development, the country's Financial Intelligence Unit (FIU) took action against some of the crypto exchanges in the country, including Bithumb, for allegedly breaking the law.

Moreover, South Korean legislators are working on a bill for the regulation of digital assets, which was proposed by the end of 2022. The bill is part of a proposed Virtual Asset Act expected to shape the regulation of digital assets in South Korea.