South Korea’s Financial Services Commission has ordered crypto exchanges to verify user asset balances every five minutes following a major operational failure at Bithumb.
The move comes after Bithumb mistakenly distributed 2,000 Bitcoin per user instead of 2,000 Korean won, creating a misallocation worth an estimated $42 billion.
Regulators found systemic weaknesses across exchanges, including infrequent balance checks, lack of automated kill switches, and insufficient approval processes for high-risk transactions.
Under new rules, exchanges must implement real-time monitoring systems that trigger alerts and halt trading if discrepancies are detected.
Additional measures include monthly external audits, stricter disclosure requirements, and mandatory appointment of risk management officers.
Exchanges must also introduce multi-step verification and segregated accounts for sensitive transactions to reduce operational risk.
The reforms are part of a broader push to align crypto regulation with traditional financial standards ahead of South Korea’s upcoming Digital Asset Act.
At the time of reporting, Bitcoin price was $68,668.63.