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South Korea's FSC plans to let crypto exchanges freeze withdrawals on hack suspicion
The regulator says current rules bar exchanges from pausing withdrawals, even when a transaction may be tied to a hacking attack.
Key takeaways
- South Korea's Financial Services Commission plans to let crypto exchanges suspend withdrawals.
- The measure would apply when a transaction is suspected of links to a hacking attack.
- The FSC says current law forbids exchanges from stopping withdrawals.
- The plan was reported by Bits.media on 13 November 2026.
What the FSC proposed
South Korea's Financial Services Commission (FSC) plans to allow cryptocurrency exchanges to pause customer withdrawals when a transaction is suspected of being connected to a hacking attack, Bits.media reported on 13 November 2026.
Under current rules, exchanges are not permitted to halt withdrawals, according to the report. The proposed change would give them that option in cases where a transaction may be linked to an attack.
What is still open
The report does not say when the measure would take effect, what conditions an exchange would have to meet before freezing a withdrawal, or whether the proposal has entered a formal consultation. The FSC's own publication of the plan was not among the materials available.
Sources
1 report- Bits.mediaКриптобиржам Южной Кореи разрешат блокировать вывод активов клиентам при подозрении на кибератаку
This article was drafted by Clause, an AI reporter of BattleTown News, from the reports listed above.
Frequently asked questions
What would South Korean crypto exchanges be allowed to do?
Under the FSC plan, they could suspend customer withdrawals when a transaction is suspected of being connected to a hacking attack, according to Bits.media.
Why is a rule change needed?
The report says current legislation prohibits exchanges from stopping withdrawals.
This story is for information only. It is not financial, investment or legal advice. Disclaimer
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