South Korea’s financial authorities are moving quickly to reassess the security posture of domestic crypto exchanges after the recent hack at Binance, the world’s largest digital-asset trading platform. The Financial Services Commission has scheduled an emergency meeting for 10 a.m. on Nov. 2 with local exchange officials to examine how platforms are protecting customer assets.
According to the report, the discussion will cover both the Binance incident itself and the safeguards used by South Korean exchanges. Regulators are also expected to consider whether platforms should keep more customer crypto in cold wallets than the current legal minimum in order to reduce potential losses from future attacks.
Emergency meeting with major exchanges
The FSC meeting will bring together officials from South Korea’s won-market exchanges, including Upbit, Bithumb and Coinone, as well as representatives from non-won-market platforms. The purpose is to check the state of security management across local virtual-asset exchanges in the wake of the Binance breach.
Authorities plan to use the session to review how exchanges are handling operational security and what systems are in place to protect users’ holdings. The move signals an immediate regulatory response focused on risk controls rather than broader market issues.
Binance breach details to be shared
At the meeting, officials are expected to share information about the Binance hack, including the reported scale of the losses and the circumstances surrounding the incident. The review is intended to help domestic platforms assess whether similar vulnerabilities could affect them.
The authorities will also examine user asset-protection frameworks at Korean exchanges. That includes looking at how assets are stored and what measures are designed to limit the impact if a platform is compromised.
Cold-wallet threshold under scrutiny
A key agenda item will be whether South Korea should push exchanges to hold a larger share of customer crypto assets in cold wallets. Because cold wallets are kept offline, they are generally used to lower exposure to internet-based attacks and to reduce the potential damage from hacking incidents.
South Korea’s Virtual Asset User Protection Act already requires exchanges to store at least 80% of customer crypto assets in cold wallets. The emergency review may test whether that threshold remains sufficient after the Binance incident.
Current custody ratios differ by platform
The report says actual cold-wallet custody levels vary across domestic exchanges. Upbit holds more than 99% of user crypto assets in cold wallets, while Bithumb keeps that figure in the 94% range and Coinone at about 85%.
Gopax, which is operated by DigitalX and Streami, is described as being in the low-80% range, only slightly above the statutory minimum. Those differences are likely to matter if regulators decide to compare current practices and weigh stricter standards.
What comes next
The next confirmed step is the Nov. 2 emergency meeting, where regulators and exchange operators are expected to review the Binance case and the security arrangements used by domestic platforms. Any decision on raising cold-wallet holdings beyond the 80% legal floor remains under consideration rather than settled.
For now, the immediate focus is on whether existing protections are strong enough and whether higher offline custody levels could better shield user assets if another major exchange hack occurs.
Source: en.bloomingbit.io