South Korea Moves to Hold Crypto Exchanges Liable for Hacks

[tradelikepro]

Following a $28M hack at Upbit, South Korean regulators are proposing strict no-fault liability rules for crypto exchanges.
Under the new framework, exchanges would be required to compensate users for losses from hacks or system failures, regardless of fault, unless users acted with gross negligence.
The move closes a regulatory gap: current law offers little protection, leaving investors vulnerable. Exchanges will also face higher security standards and potential fines up to 3% of annual revenue.

[Nahid Hossen]

Accountability push is necessary; user protection must come first.

[Abdul Khan]

Exchanges will need tighter security or face real consequences.