South Korea FSC lets exchanges freeze funds before hack confirmed

South Korea's Financial Services Commission (FSC) will allow crypto exchanges to freeze deposits and withdrawals at the first sign of a hack, before a breach is confirmed. The regulator is issuing a no-action letter to shield exchanges from regulatory sanctions for acting early on suspected intrusions.

The policy gives South Korean platforms legal cover to halt trading preemptively, responding to a wave of cyberattacks on the country's financial and crypto firms. No details were disclosed on the letter's scope or which exchanges are covered.