South Korea urges crypto exchanges to increase cold storage
Key points
- South Korea’s Financial Services Commission has urged domestic crypto exchanges to increase cold-wallet holdings following Binance’s security incident.
- Regulators called for additional reserves, continuous transaction monitoring and faster coordination over suspicious access attempts.
- The measures build on existing rules requiring exchanges to store at least 80% of customer assets offline.
South Korea’s Financial Services Commission (FSC) has urged crypto exchanges to increase cold storage following Binance’s reported US$6.3 billion hot-wallet incident.
The regulator held an emergency meeting on 2 November with major exchanges and financial security agencies.
FSC Digital Finance Policy Director General Yu Young-jun chaired the meeting, which examined domestic exchange security systems.
South Korea already requires exchanges to store at least 80% of customers’ virtual assets in offline cold wallets.
The FSC also urged exchanges to increase reserves, continuously monitor deposits and withdrawals, and add security response personnel.
Regulators examined system access controls, hot-wallet withdrawal approvals, transaction signing systems and administrator permissions.
The review followed Binance’s disclosure of approximately US$6.3 billion in unauthorised hot-wallet outflows on 30 October.
The FSC plans continued cooperation with financial agencies and industry participants to prevent further breaches and limit potential losses.
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