South Korea plans to let crypto exchanges suspend deposits and withdrawals when they suspect a hack, without waiting for an intrusion to be confirmed. According to PANews, citing Cointelegraph, the Financial Services Commission (FSC) plans to issue a no-objection letter allowing preventive suspensions under specified conditions.

Current rules prohibit exchanges from blocking withdrawals without valid grounds and explicitly allow restrictions only after a hacking incident is confirmed. The FSC also requires exchanges to maintain 24-hour monitoring and incident response, increase cold-wallet holdings, and strengthen insurance coverage and reserves.

Exchanges unable to monitor continuously will be allowed to process deposits and withdrawals only during staffed hours and must notify users in advance.