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Crypto Regulation

South Korea urges crypto exchanges to raise cold storage after Binance hack

South Korea’s financial regulator is pressing domestic crypto exchanges to increase the share of customer assets held in cold storage, even though they already meet the 80% cold-wallet requirement. The push follows the Binance hack and signals tighter scrutiny of exchange custody practices.

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AI take

The regulator's move is notable because it asks exchanges to go beyond a threshold they already satisfy, suggesting that meeting a minimum is no longer treated as sufficient after a major venue's breach. It affects domestic operators' custody and operational costs, and by extension how Korean exchanges differentiate themselves on safety. Whether the 80% rule becomes a floor that gets informally raised, and how exchanges respond in their cold-storage disclosures, is the open question worth watching.

Generated by AI for reference only.

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