๐ฐ๐ท Safety: South Korea plans no-fault liability rules for crypto platforms after the Upbit attack!
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๐ข What's new?
โ The Financial Services Commission (FSC) intends to impose no-fault compensation rules on platforms, similar to banks, to compensate for losses from attacks or failures
โ This comes after the Upbit attack on November 27, where 104 billion Solana tokens worth $30.1 million were stolen in 54 minutes
โ It includes fines of up to 3% of annual revenue, and higher IT security requirements, with 20 major platform outages since 2023
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๐ก Analysis:
โ Compensation covers losses without proving negligence, to enhance customer protection in the rapidly growing crypto market
โ This comes amid criticism for the delay in reporting the attack, raising compliance standards to the level of financial institutions
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โก Why does it matter to you?
โ It protects users in Korea (a large crypto market), boosting global trust and reducing investment risks
โ It may drive platforms to invest more in security, but increases costs for them
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โDo you think these rules will make Korean platforms safer globally?
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