# South Korea’s FSC to Permit Crypto Exchange Freezes on Suspected Hacks

By Riza Dagoc

Canonical URL: https://www.tokenpost.com/news/regulation/55408
Published: 2026-11-12T12:57:14.000Z
Updated: 2026-11-12T12:57:14.000Z
Section: Regulation

> The commission decided to issue a no-action opinion but gave no issuance date, freeze duration or detailed conditions. It also called for continuous monitoring and stronger wallet safeguards.

South Korea’s Financial Services Commission (FSC) decided Thursday to issue a no-action opinion that would let crypto exchanges block customer deposits and withdrawals when they suspect a hack, before an intrusion is confirmed.

The FSC gave no date for issuing the opinion, detailed conditions for a freeze or maximum duration. The commission described current rules as allowing blocks only after a hack is clearly established. Article 11 of South Korea’s Act on the Protection of Virtual Asset Users bars blocks without good cause prescribed by Presidential Decree and requires advance customer notice and immediate reporting to the FSC when a block occurs.

The commission also called for continuous monitoring and response coverage. Exchanges unable to maintain that coverage should process deposits and withdrawals only during monitored hours, notify customers in advance and staff to handle withdrawal requests.

South Korea requires exchanges to hold at least 80% of customer assets in cold wallets, and the FSC put the industry-wide ratio above 95%. It urged platforms to keep hot-wallet balances to the minimum needed for transactions and strengthen insurance coverage and reserves. The FSC cited the Binance hack as an example of how rapid restrictions can limit customer losses.