๐Ÿ‡ฐ๐Ÿ‡ท Safety: South Korea plans no-fault liability rules for crypto platforms after the Upbit attack!

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๐Ÿ“ข 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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๐Ÿ’ก 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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โšก 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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โ“Do you think these rules will make Korean platforms safer globally?

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