After Historic Binance Hack, South Korea Considers 99% Cold Wallet Rule for Crypto Exchanges
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South Korea’s Financial Services Commission is weighing a rule that would require crypto exchanges to hold at least 99% of customer assets in cold wallets, following the historic Binance hack. The proposal aims to shield user funds from breaches, but smaller exchanges warn that keeping only 1% hot could slow withdrawal processing during demand spikes. The move signals tighter custody standards for Korean trading venues and could pressure operators to upgrade wallet infrastructure or face liquidity bottlenecks. Watch whether the FSC finalizes the 99% threshold and how exchanges balance security against withdrawal speed.
Muhabbit's AI wrote this summary in its own words from CryptoPotato's report. It can get details wrong, so check the source.
Named in this story
Binance, South Korea, crypto exchanges