South Korea orders massive crypto wallet lockdown following the Binance hack
Summary
South Korea’s Financial Services Commission urged domestic crypto exchanges to raise the share of customer assets held in cold wallets, monitor deposits and withdrawals continuously, add incident-response staff, report suspicious access promptly and build reserves. The measures followed the Oct. 30 Binance hack and were discussed with regulators and major virtual-asset businesses on Nov. 2. The review also covered system access controls, withdrawal approvals and administrator privileges. Existing rules set an 80% customer-asset custody threshold, alongside standards for insurance, mutual-aid coverage or reserves. Separately, regulators began on-site inspections on Oct. 28 after Bithumb reported signs of an employee-information leak.
