South Korea · CryptoSlate
South Korea orders large crypto wallet lockdown following the Binance hack
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South Korea's Financial Services Commission has asked domestic crypto exchanges to keep a larger share of customer assets offline and strengthen their response to suspicious activity after the Binance hack.
Key facts
- The FSC's Nov. 2 requests, reaffirmed Nov. 3, build on a custody framework adopted in 2024
- The regulator's Nov. 3 clarification said it immediately requested the measures at a meeting held at 10 a.m. on Nov. 2
- The FSC's July 2024 supervision-regulation notice set the custody share at 80% of customer crypto's defined economic value
- On Oct. 28, regulators began on-site inspections after Bithumb reported signs of an employee-information leak
Summary
01 South Korea's FSC requested higher cold-wallet custody and stronger exchange safeguards at its Nov. 2 emergency meeting. 02 The requests include continuous transfer monitoring, extra response staff, abnormal-access reporting and additional reserves for domestic operators. 03 The November releases specify neither a new custody percentage nor exchange-by-exchange implementation, leaving completion unconfirmed. The FSC urged operators to increase the proportion held in cold wallets, continuously monitor deposits and withdrawals, secure additional response staff, promptly report and share abnormal access attempts, and build additional reserves.