S.Korean Crypto Firm Delio Suspends Withdrawals

• South Korean Bitcoin lending firm Delio has announced the suspension of withdrawals
• This follows a similar announcement from crypto yield firm Haru on June 13.
• Suspension of withdrawals by Haru caused confusion and destabilized the South Korean crypto market.
• As per Delio, the suspension will remain active until “the situation and its aftermath are resolved.”

The crypto market is going through a tough phase once again due to the regulatory uncertainty surrounding crypto assets in the United States and around the globe. Amid the world’s largest cryptocurrency, Bitcoin (BTC), dropping below $25,000 for the first time in three months, South Korean Bitcoin lending platform Delio has announced a temporary suspension of customer withdrawals “in order to safely protect the assets of customers currently in custody.”

The announcement was made in light of South Korean crypto yield platform Haru Invest suspending deposits and withdrawals on June 13, which has caused increased confusion and uncertainty for investors in the region. As per Delio, the suspension will remain active until “the situation and its aftermath are resolved.”

“In order to safely protect the assets of customers currently in custody, Delio will inevitably suspend withdrawals temporarily as of June 14, 2023, 18:30,” stated the announcement from the South Korean firm

Furthermore, the South Korean Bitcoin lending firm also added that it will work to protect customers’ assets “while quickly grasping the facts and aftermath related to this situation.”

It is important to mention here that Haru announced a withdrawal halt, claiming that “certain information provided by a consignment operator was suspected to be false” during an “internal inspection process.” The firm plans “to take necessary measures” after completing its “fact-finding process” against the operator in question

The withdrawal halt has destabilized the crypto environment in South Korea, as can be seen in the case of Delio. There could be other firms that follow similar steps in the near future if Haru does not act fast. According to the Bitcoin lending platform’s website, Delio currently holds $1 billion in BTC, followed by $200 million in Ether (ETH) and $8.1 billion in altcoins

As reported earlier by Bitnation, last year in October, the country announced that it aims to release the digital IDs in 2024 and expects 45 million people to adopt them within two years. The adoption of crypto tech in South Korea is increasing rapidly.