🇰🇷 South Korea Moves to Tighten Crypto Exchange Rules
South Korea’s Financial Services Commission is drafting tougher rules for crypto exchanges after the Upbit hack, which saw about $30 million stolen. The proposals would hold exchanges to bank-level standards, meaning they could have to compensate users for losses from hacks or system failures even when the platform isn’t at fault.
The penalty ceiling is also rising sharply. Current maximum fines are about $3.4 million, and the draft would tie penalties to up to 3% of annual revenue.
🔐 What’s on the table:
No-fault compensation for users hit by hacks or outages Stricter IT security and system standards More accountability for executives on security Tougher listing requirements, including limits on tokens from projects with unresolved security issues
For traders, this could mean higher compliance costs for local exchanges and more scrutiny on which tokens get listed. It’s also a reminder that exchange security incidents are drawing regulatory responses across markets.
Keep your own custody and security habits in mind, and don’t assume an exchange’s compensation terms will cover every loss.
#CRYPTO #SOUTHKOREA #REGULATIONS
$SOL
South Korea’s Financial Services Commission is drafting tougher rules for crypto exchanges after the Upbit hack, which saw about $30 million stolen. The proposals would hold exchanges to bank-level standards, meaning they could have to compensate users for losses from hacks or system failures even when the platform isn’t at fault.
The penalty ceiling is also rising sharply. Current maximum fines are about $3.4 million, and the draft would tie penalties to up to 3% of annual revenue.
🔐 What’s on the table:
No-fault compensation for users hit by hacks or outages Stricter IT security and system standards More accountability for executives on security Tougher listing requirements, including limits on tokens from projects with unresolved security issues
For traders, this could mean higher compliance costs for local exchanges and more scrutiny on which tokens get listed. It’s also a reminder that exchange security incidents are drawing regulatory responses across markets.
Keep your own custody and security habits in mind, and don’t assume an exchange’s compensation terms will cover every loss.
#CRYPTO #SOUTHKOREA #REGULATIONS
$SOL