The FSC is updating regulations to allow preventive withdrawal freezes at crypto exchanges, responding to recent security threats and cybersecurity deficiencies identified across 130 financial firms.
South Korea's FSC will issue a no-action letter letting exchanges suspend deposits and withdrawals on suspected hacks, plus demands for 24/7 monitoring, higher cold-wallet holdings and stronger insurance. This is a tightening of exchange-level operational rules, not a market-wide ban, so the direct price effect on Bitcoin is limited and mixed in direction.
South Korea's Financial Services Commission will issue a no-action letter allowing crypto exchanges to suspend deposits and withdrawals when hacking is suspected. This policy shift follows recent security incidents at GOPAX and Prabang, aiming to bolster industry defenses through mandatory 24/7 monitoring and increased cold-wallet holdings.
The rule only affects how South Korean crypto exchanges handle deposits and withdrawals when hacking is suspected. It does not ban crypto trading, so no direct hit to Bitcoin's price is described.
Recent incidents: GOPAX suspended trading and withdrawals on Friday after a hacking threat without a breach, and Prabang lost about $70,000 in a hot-wallet breach detected on Oct. 24.