South Korea plans to impose fines on cryptocurrency exchanges that suffer from hacker attacks, amounting to up to 10% of their losses

According to a bill drafted by the Financial Services Commission, South Korea's financial regulatory agency plans to impose fines on cryptocurrency exchanges that suffer from hacking attacks, with a maximum penalty equivalent to 10% of their losses. Currently, the cap on this fine is only $456,000. If the bill is passed, taking Upbit, which suffered a loss of $36 million last year, as an example, it could face fines of up to $3.6 million. Additionally, another government proposal is considering imposing fines of 3% of annual revenue.

Data shows that from January 2023 to September 2025, Upbit, Bithumb, Coinone, Korbit, and GOPAX have collectively experienced 20 security incidents involving customer funds.