South Korea to Impose No-Fault Compensation Rules on Crypto Exchanges After $30M Upbit Breach

South Korea's Financial Services Commission is developing provisions requiring cryptocurrency exchanges to compensate users for losses from security incidents or system failures, regardless of fault. The proposal follows a November 27 breach at Upbit that resulted in approximately $30.1 million in stolen digital assets. The no-fault compensation framework would mirror obligations currently imposed on traditional financial institutions under existing financial transaction laws.