South Korea Set to Make Crypto Exchanges Fully Accountable Like Banks

Regulatory Changes in South Korea: South Korea is implementing bank-level liability rules for cryptocurrency exchanges, requiring them to compensate clients for losses from hacks or system failures, following a significant breach at Upbit.

Increased Oversight and Penalties: The Financial Services Commission is proposing stricter IT security measures and higher penalties for violations, including fines up to 3% of annual revenue for security lapses.

Legislative Developments: A draft bill on stablecoins is being prepared, with a deadline of December 10, reflecting the government's commitment to robust regulation of digital assets and consumer protection.

Impact on the Crypto Market: These regulatory reforms aim to enhance consumer confidence in the crypto sector, although they may temporarily disrupt market operations as compliance standards are tightened.