South Korea crypto enforcers are making ready one of many strictest investor-protection regimes within the World, drafting laws that may pressure exchanges to completely compensate customers for losses from hacks or system failures with out requiring proof of negligence.
This actually throws a wrench in my plans of constructing simply sufficient cash passively to hop between Seoul and Tokyo indefinitely and hire an condominium, purchase meals, and have both a Korean or Japanese GF.
Bummer. The proposal follows the 28M Upbit breach, which uncovered a regulatory hole giant sufficient to erode public confidence within the nation’s digital asset markets.
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The Monetary Companies Fee plans to introduce no-fault legal responsibility guidelines that mirror South Korean necessities for banks and digital cost corporations. Beneath the framework, an trade should repay victims until the person acted with clear gross negligence, creating automated and predictable shopper safety.
“System safety is the lifeline of digital asset markets,” mentioned Governor Lee Chan-jin of the Monetary Supervisory Service.
BREAKING:
South Korea to impose bank-level legal responsibility on crypto exchanges after the Upbit hack.
This might require crypto companies to repay customers for hack losses even when they’re not at fault. pic.twitter.com/9rJEerJjKD
— Coin Bureau (@coinbureau) December 7, 2025
The explanation for the legislative overhaul is easy: crypto exchanges usually are not topic to the Digital Monetary Transactions Act, that means regulators lacked the authority to order compensation after the Upbit hack.
CoinDesk information helps illustrate the structural weak spot. Between 2023 and September 2025, South Korea’s 5 largest exchanges reported twenty separate IT incidents. Greater than 900 customers suffered losses exceeding $29 Mn.
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Change-level breakdown from regulatory disclosures:
Upbit: six incidents affecting 616 customers
Bithumb: 4 incidents affecting 326 customers
Coinone: three incidents affecting 47 customers
The November 27 breach alone noticed 44.5 billion gained in Solana-based property drained in lower than one hour.
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The timing is critical. Korean retail flows have slowed throughout main centralized platforms this quarter, whereas world danger property have been wobbling underneath shifting Federal Reserve expectations. The dearth of spot liquidity throughout BTC and ETH markets makes regulatory confidence extra essential for attracting home institutional gamers.
If handed, South Korea’s no-fault legal responsibility mannequin can be one of many world’s hardest crypto regimes.
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Key Takeaways
South Korea Crypto is making ready one of many strictest investor-protection regimes in world crypto, drafting laws …
If handed, South Korea’s no-fault legal responsibility mannequin can be one of many world’s hardest crypto regimes.
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