South Korea to Allow Crypto Exchanges to Suspend Deposits and Withdrawals When a Hack Is Suspected

November 12: According to Cointelegraph, South Korea's Financial Services Commission (FSC) plans to allow crypto exchanges to suspend deposit and withdrawal services when they suspect a hack, without waiting for the intrusion to be confirmed. The FSC said it will issue a no-action letter permitting exchanges to implement preventive suspensions under specific conditions. Current rules prohibit exchanges from blocking withdrawals without justifiable grounds and only explicitly allow restrictions after a hacking incident has been confirmed.

The FSC also requires exchanges to conduct round-the-clock monitoring and incident response, increase cold wallet holdings, and strengthen insurance coverage and reserves. Exchanges that cannot maintain continuous monitoring may only process deposits and withdrawals during staffed hours, and must notify users in advance.