🇰🇷 What is South Korea planning for crypto after the Upbit hack?

• The Korean authorities —through the Financial Services Commission (FSC)— are reviewing a law that would impose “no-fault liability” on crypto exchanges, meaning they must compensate users even if there was no direct negligence by the exchange.

• The initiative arises after the hack on November 27, 2025, at Upbit, where tokens based on Solana were stolen for an estimated amount of 44.5 billion won.

• In addition to the compensation requirement, the regulations include standards similar to those of traditional banking: robust security infrastructure, annual IT risk management plans, and severe penalties —including fines of up to ~3% of the exchange's annual revenue in the event of a hack or serious failure.

• Overall, this means that exchanges in Korea would be treated legally like banks or electronic payment companies, moving towards more serious regulation and user protection.

🌍 What does this change imply — for users, exchanges, and the global crypto market

• For users: there is a clear improvement in investor protection. If the regulation is approved, customers affected by a hack could have the right to compensation, reducing “all or nothing” risks when using exchanges.

• For exchanges: it represents an increase in operational costs (security, reserves, compliance) and an incentive to improve their systems — which will likely lead to greater professionalization of the sector.

• For the global crypto market: this type of regulation helps legitimize cryptocurrencies as a more regulated asset class, which could attract institutional investors and more conservative capital. Additionally, it provides an example of “crypto-friendly but responsible” regulation that other countries could replicate.