regulation ·
South Korea urges crypto exchanges to boost cold storage after Binance hack
Regulatory bodies in South Korea are pressing crypto exchanges to increase the proportion of customer digital assets secured in cold storage.
Currently, the jurisdiction mandates that exchanges maintain a minimum of 80% of client cryptocurrency within cold wallets.
Despite this existing requirement, the regulator is actively encouraging exchanges to enhance these security measures further.
This directive signals a heightened focus from supervisory authorities on asset custody practices within the local crypto ecosystem.
The current regulatory framework already establishes a baseline for safeguarding customer holdings.
The regulator's insistence on further increases in cold storage utilization reflects an ongoing emphasis on mitigating custody risks across market participants and institutions.
Why it matters
This regulatory pressure highlights the ongoing focus on investor protection within the South Korean crypto market. Increased cold storage directly addresses risks associated with exchange security and potential hacks. Readers should watch how these heightened requirements impact compliance and operational costs for exchanges.
Earlier coverage
Reported by CoinTelegraph.
Topics: regulation, exchange.
