Seoul Are Planning a Crypto Raid: Is South Korea Crypto SAFU?

South Korea crypto enforcers are preparing 1 of the strictest investor-protection regimes successful the World, drafting authorities that would unit exchanges to afloat compensate users for losses from hacks oregon strategy failures without requiring impervious of negligence.

This truly throws a wrench successful my plans of making conscionable capable wealth passively to hop betwixt Seoul and Tokyo indefinitely and rent an apartment, bargain food, and person either a Korean oregon Japanese GF.

Bummer. The connection follows the 28M Upbit breach, which exposed a regulatory spread ample capable to erode nationalist assurance successful the country’s integer plus markets.

DISCOVER: 20+ Next Crypto to Explode successful 2025

The Financial Services Commission plans to present no-fault liability rules that reflector South Korean requirements for banks and physics outgo companies. Under the framework, an speech indispensable repay victims unless the idiosyncratic acted with wide gross negligence, creating automatic and predictable user protection.

“System information is the lifeline of virtual plus markets,” said Governor Lee Chan-jin of the Financial Supervisory Service.

The crushed for the legislative overhaul is straightforward: crypto exchanges are not taxable to the Electronic Financial Transactions Act, meaning regulators lacked the authorization to bid compensation aft the Upbit hack.

CoinDesk information helps exemplify the structural weakness. Between 2023 and September 2025, South Korea’s 5 largest exchanges reported 20 abstracted IT incidents. More than 900 users suffered losses exceeding $29 Mn.

DISCOVER: Top 20 Crypto to Buy successful 2025

Exchange-level breakdown from regulatory disclosures:

• Upbit: six incidents affecting 616 users

• Bithumb: 4 incidents affecting 326 users

• Coinone: 3 incidents affecting 47 users

The November 27 breach unsocial saw 44.5 cardinal won successful Solana-based assets drained successful little than 1 hour.

DISCOVER: Next 1000X Crypto: 10+ Crypto Tokens That Can Hit 1000x successful 2025

The timing is significant. Korean retail flows person slowed crossed large centralized platforms this quarter, portion planetary hazard assets person been wobbling nether shifting Federal Reserve expectations. The deficiency of spot liquidity crossed BTC and ETH markets makes regulatory assurance much important for attracting home organization players.

If passed, South Korea’s no-fault liability exemplary would beryllium 1 of the world’s toughest crypto regimes.

EXPLORE: Seeking a Career Change? Become a Bitcoin Bounty Hunter successful Fordow, Iran

Read archetypal communicative Seoul Are Planning a Crypto Raid: Is South Korea Crypto SAFU? by Isaiah Mccall astatine 99bitcoins.com