South Korea will set up a digital asset user protection fund to help users affected by the collapse of crypto exchanges recover trapped funds. The fund, initiated by self-regulatory organization DAXA and approved by the South Korean Financial Services Commission (FSC), is scheduled to launch in October. With 10 of South Korea's 22 crypto exchanges closed and another three suspended, the safety of user funds has become a key concern. The fund will negotiate with the failed exchanges to transfer user funds and virtual assets to the bank accounts managed by the fund, and then contact users to arrange the return process.