South Korea Proposes Bank-Level Liability Rules for Crypto Exchanges After $30 Million Upbit Breach

South Korea's Financial Services Commission is reviewing regulations to impose no-fault compensation requirements on cryptocurrency exchanges following a November hack at Upbit that involved $30 million in Solana-based tokens. The proposed framework would align virtual asset providers with traditional financial institutions in terms of liability and operational standards. More than 900 users were impacted by the breach, which saw over 104 billion tokens transferred to external wallets within one hour.