20 System Failures. 900 Customers Affected. Regulators Are Done Waiting.

[chainsniff]

South Korea’s FSC and FSS are tightening the screws on crypto exchanges after repeated outages across the Big Five (Upbit, Bithumb, Coinone, Korbit, Gopax).

20 failures since 2023
900+ users affected
5B KRW+ in losses
Upbit alone: 6 failures, 600 affected customers

Proposed changes include:

️ Mandatory no-fault customer compensation
️ Higher IT and cybersecurity standards
️ Bank-style operational requirements
️ Penalties of up to 3% of annual revenue for hacks (vs. today’s max $3.4M)

This is the strictest crypto oversight South Korea has considered to date.

[Nahid Hossen]

20 failures is unacceptable—no wonder regulators stepped in.