South Korea to Impose Bank-Level Liability on Crypto Exchanges After $30.1M Upbit Hack

South Korea is advancing regulations to hold major cryptocurrency exchanges to bank-level liability standards following a November 27 hack at Upbit that resulted in $30.1 million in losses. The Financial Services Commission is reviewing provisions that would require platforms to compensate users for security breaches and system failures regardless of fault. The proposed framework mirrors existing rules applied to traditional banks under the country's electronic financial transactions law.