South Korea is making ready to implement a rule that may maintain cryptocurrency exchanges to the identical “no‑fault” requirements banks comply with.
In line with a report by The Korea Occasions, this rule will allow customers to get better losses from hacks or system failures, even when the trade shouldn’t be at fault.
Information from the Monetary Supervisory Service (FSC) exhibits that from 2023 by September 2025, South Korea’s 5 crypto platforms, together with Upbit, Bithumb
$603.96M
, Coinone
$80.32M
, Korbit
$13.7M
and Gopax
$1.93M
, skilled 20 system failures, which affected greater than 900 customers and triggered losses exceeding 5 billion gained.
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Authorities are at present reviewing laws to develop the Digital Monetary Transactions Act to incorporate digital asset service suppliers. The proposed guidelines would require stronger IT safety protocols, common audits, quicker breach reporting, and allow fines of as much as 3% of annual income.
The November 27 incident at Upbit
$1.13B
, the place over 104 billion Solana
$135.32
‑based mostly tokens have been moved to exterior wallets, uncovered severe gaps in safety for customers beneath present rules.
The Upbit hack additionally drew criticism for the delay in reporting. Though the breach was found round 5 AM on November 27, notification to regulators didn’t happen till about 11:00 AM.
Some lawmakers urged the delay might have been orchestrated to happen simply after the merger between Dunamu and Naver Monetary.
On November 28, South Korea introduced plans to implement full crypto Journey Rule information sharing for all transactions. What did the FSC say? Learn the complete story.
