South Korea’s regulatory body aims to impose fines on hacked cryptocurrency exchanges up to 10% of stolen value

The Financial Services Commission has drafted a bill to fine exchanges up to 10% of any stolen assets. Following a large $36 million hack of Upbit, this change aims to enforce compliance with high IT security standards similar to traditional financial institutions.

If enacted, fines exceeding $3.6 million could be levied compared to the current maximum of $456,000. An additional proposal suggests a fine of 3% of annual revenue from exchanges, potentially totaling $36 million, signaling a significant shift in regulatory actions.