Based on CoinRepublic, South Korea is preparing to impose bank-level no-fault liability rules on crypto exchanges, including Upbit, requiring them to reimburse customers even when not at fault. This follows the November 2025 Upbit hack, where 104 billion Solana-based tokens worth $30.1 million were drained in 54 minutes. The Financial Services Commission (FSC) has proposed draft rules that would extend the Electronic Financial Transactions Act to cover virtual asset service providers, mandating automatic reimbursement for user losses from hacks or system failures. The new rules also include real-time breach reporting, annual security investment plans, and third-party IT audits. Fines could reach 3% of yearly revenue, potentially hitting Upbit with a $300 million penalty based on its 2024 turnover. The public consultation period runs until January 15, 2026, with implementation expected in the second quarter.
South Korea to Impose Bank-Level Liability on Crypto Exchanges After Upbit Hack
The Coin RepublicShare
Source:Show original
Disclaimer: The information on this page may have been obtained from third parties and does not necessarily reflect the views or opinions of KuCoin. This content is provided for general informational purposes only, without any representation or warranty of any kind, nor shall it be construed as financial or investment advice. KuCoin shall not be liable for any errors or omissions, or for any outcomes resulting from the use of this information.
Investments in digital assets can be risky. Please carefully evaluate the risks of a product and your risk tolerance based on your own financial circumstances. For more information, please refer to our Terms of Use and Risk Disclosure.