Korea’s Crypto Bailout: Where Hacks Meet Handouts 💸

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Ah, South Korea! A nation that knows how to turn chaos into compensation. Now, they propose a no-fault rule for crypto exchanges, demanding they reimburse users for hacks or IT failures-because why let technology ruin a good financial scheme? 🤡💻

  • New rules decree that exchanges must compensate users for losses, unless, of course, you were a particularly clumsy investor-gross negligence is the only escape clause left unscathed. 😅
  • This follows a string of IT meltdowns (cough Upbit cough), proving even the most “secure” systems are as reliable as a Victorian bank vault with a broken lock. 🔐💥
  • If passed, this law will crown South Korea as the global champion of crypto consumer protection-or at least the most generous ATM for victims of digital banditry. 🏆

South Korea’s regulators are drafting legislation that would force exchanges to pay up for hacks or system failures-no questions asked, no blame games. Because who needs evidence when you can just assume the worst? 🕵️♂️💸

The Financial Services Commission, ever the trendsetter, plans to mirror bank-style liability rules. Under this framework, exchanges must repay victims unless you, dear user, were deliberately careless. A noble pursuit, or a recipe for litigation? 🤷♂️

Exchanges Bow to the No-Fault Overlord

The proposal arrived after Upbit’s infamous breach-a digital heist that would make a Victorian pickpocket blush. Clearly, the current laws were as useful as a screen door on a submarine. 🛥️🚫

“System security is the lifeline of virtual asset markets,” declared Lee Chan-jin, Governor of the Financial Supervisory Service. How poetic, given the state of their cybersecurity. 🎭

Crypto exchanges currently operate outside the Electronic Financial Transactions Act, meaning regulators can’t force compensation after a breach. A legal oversight as glaring as a missing sock in a monochrome world. 🧦

Between 2023 and September 2025, Korea’s five largest exchanges reported 20 IT incidents, affecting over 900 users. A veritable carnival of chaos! 🎪

Upbit: 6 incidents, 616 victims. Bithumb: 4 incidents, 326 victims. Coinone: 3 incidents, 47 victims. And let’s not forget the November 27 breach, which drained Solana assets faster than a gossip spreads at a royal ball. 🚀💸

Retail trading in Korea has slowed to a crawl, while global markets dance to the Fed’s tune. But fret not-South Korea’s no-fault model may yet become the gold standard of crypto regulation. Or the first draft of a dystopian novel. 📖🔥

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2025-12-08 16:43