South Korea Tightens Crypto Exchange Security

South Korea strengthens crypto exchange security

The Financial Services Commission (FSC) of South Korea has tightened security requirements for cryptocurrency exchanges following the Binance hack. On November 2, an emergency meeting was held with representatives of major platforms, including Upbit and Bithumb.

Exchanges are advised to increase the share of assets held in cold wallets, enhance transaction monitoring, and tighten access control to internal systems. Additionally, they should establish reserve funds to cover potential cyber incidents.

New measures aim to protect user funds and reduce hacking risks.

• increasing the volume of assets in cold wallets
• enhancing transaction monitoring
• controlling access to internal systems
• establishing reserves for cyber incidents

Current South Korean legislation already requires exchanges to store at least 80% of client funds in cold wallets. The new recommendations aim to further strengthen investor asset protection.