Overview
- Regulators and lawmakers are shaping proposals that would require platforms to compensate customers for losses from hacks or outages regardless of proven fault.
- The package under discussion includes tougher IT and audit standards, rapid incident reporting measured in minutes, and fines that could reach 3% of annual revenue.
- Momentum grew after an Upbit breach on November 27 moved more than 104 billion won in Solana-based tokens to external wallets in under an hour.
- Lawmakers criticized a reporting lag to the Financial Supervisory Service of nearly six hours, reinforcing plans for stricter disclosure timelines.
- FSS data show the five largest exchanges reported 20 system failures since 2023 affecting over 900 users and about 5 billion won in losses, with Upbit logging six incidents.