Should crypto exchanges block deposits and withdrawals as soon as a hack is suspected?
On November 12, 2026, South Korea’s Financial Services Commission (FSC) announced how to handle this situation. The agency decided to issue a “no-action letter,” providing a basis for digital asset service providers to proactively suspend deposits and withdrawals when an intrusion is suspected, subject to certain conditions.
According to the FSC, current regulations allow blocking only when there are reasonable grounds, while the rules for taking immediate action at the suspicion stage of a hack are unclear. The new approach aims to enable an earlier response to limit losses.
The FSC also requires continuous monitoring and response. Providers that cannot meet this requirement must process deposits and withdrawals during hours when adequate systems and staff are available, and notify users in advance.
I think the challenge lies on both sides. An early block could protect assets before an attacker transfers them, but users also need to know when they can access their money again.
So, beyond the emergency stop button, I would look at the activation criteria, how progress updates are provided, and the conditions for restoring services. Those details determine whether protective measures create additional uncertainty for customers.
If this happened, what would you want the exchange to announce first?
Source — South Korea’s FSC, statement dated November 12, 2026.
$BTC $ETH $BNB
On November 12, 2026, South Korea’s Financial Services Commission (FSC) announced how to handle this situation. The agency decided to issue a “no-action letter,” providing a basis for digital asset service providers to proactively suspend deposits and withdrawals when an intrusion is suspected, subject to certain conditions.
According to the FSC, current regulations allow blocking only when there are reasonable grounds, while the rules for taking immediate action at the suspicion stage of a hack are unclear. The new approach aims to enable an earlier response to limit losses.
The FSC also requires continuous monitoring and response. Providers that cannot meet this requirement must process deposits and withdrawals during hours when adequate systems and staff are available, and notify users in advance.
I think the challenge lies on both sides. An early block could protect assets before an attacker transfers them, but users also need to know when they can access their money again.
So, beyond the emergency stop button, I would look at the activation criteria, how progress updates are provided, and the conditions for restoring services. Those details determine whether protective measures create additional uncertainty for customers.
If this happened, what would you want the exchange to announce first?
Source — South Korea’s FSC, statement dated November 12, 2026.
$BTC $ETH $BNB
