South Korea Orders Crypto Exchanges to Protect Customer Funds Like Banks Do

South Korea's financial regulator has ordered crypto exchanges to protect customer funds as well as traditional financial companies do. The move follows a series of cyberattacks and data leaks at Korean crypto platforms.

Why it matters

South Korea is one of the world's busiest crypto markets, and millions of people there keep coins on local exchanges. When an exchange is hacked, it is usually the customers' coins that are stolen. Holding exchanges to bank-level security is meant to make that less likely.

The rule also has a practical side for users. An exchange that can't watch its systems day and night will have to stop deposits and withdrawals outside business hours. Customers of smaller platforms may find they can't move their coins at night or on weekends.

What changes for exchanges

The standard is now the one banks and other traditional financial firms already meet. The key requirement is round-the-clock monitoring of the platform's systems. An exchange that has it can keep deposits and withdrawals open at all hours. One that doesn't will be limited to business hours for money going in and out.

What to do

If you keep crypto on a Korean exchange, check whether it has announced changes to its deposit and withdrawal hours. Coins you don't plan to trade are safer in a wallet you control. Never send a seed phrase or a login code to anyone who asks for it.