South Korean Financial Services Commission Convenes Exchanges Following Binance Hack, Demands Higher Cold Wallet Ratios

on November 2, according to an announcement by the South Korean Financial Services Commission, the commission convened an emergency meeting with the Financial Supervisory Service, the Financial Security Institute, the Digital Asset Exchange Joint Consultative Body (DAXA), and major virtual asset operators regarding the Binance hack, to assess the incident's impact on the Korean market and the industry's response framework.

The committee focused its inspection on operators' information system access controls, approval and signature processes for wallet asset transfers, and administrator privilege management. It mandated increasing the proportion of assets held in cold wallets, continuous monitoring of asset inflows and outflows, and expanding emergency response staffing. Furthermore, it reinforced requirements for reporting anomalous access and information sharing, while considering supplementary security measures such as augmenting reserve funds.