South Korea requires cryptocurrency exchanges to verify assets every 5 minutes to strengthen internal controls
The Financial Services Commission (FSC) of South Korea announced on Monday that, in response to the internal control vulnerabilities exposed by the recent Bithumb payment incident, it has required all domestic cryptocurrency exchanges to conduct reconciliations of their ledgers and actual assets every five minutes.
Emergency inspections revealed that three of the five major exchanges in the country only reconcile once a day, making it difficult to timely identify and address discrepancies; some systems are unable to automatically suspend trading when significant mismatches occur, raising regulatory concerns. According to the new regulations:
Exchanges must establish an automated ledger-wallet reconciliation system with a cycle of five minutes.
Standards for triggering automatic trading suspension due to significant discrepancies must be set.
High-risk processes (such as promotional payments) must undergo enhanced scrutiny, including third-party reviews and multi-level approvals.
High-risk accounts must be managed independently, and payments must use automated verification tools.
The frequency of external audits will change from quarterly to monthly, with the disclosure scope expanded to include detailed asset balances by wallet and ledger. The FSC stated that it will complete the relevant rule revisions by April 2026. Previously, Bithumb announced that its IPO plan would be postponed until after 2028 to strengthen internal controls and accounting policies by 2027; at the same time, the equity swap between Naver Financial and Dunamu will also be completed by the end of September.
You may also like
Morning Report | CoinEx becomes a key hub for Iran to evade sanctions, involving over $3.8 billion in funds; Kalshi seeks a new round of financing, with a valuation potentially rising to $40 billion
From the white-haired stock god to the billionaire fund mogul, the smart people shorting Nvidia are all getting rich using the same framework
Why do cryptocurrency projects always like to change their names?
Global Launch: As predictions become the most scarce asset in the AI era, Manadia is defining the next generation of the value internet
Who is footing the bill for the $64 billion accounting frenzy?
I never expected that the first application of AI x Crypto would be in security auditing
What is your view on Binance's competitive advantages?
ETH has entered a non-consensus phase, and the turning point is approaching!
The shift in the cloud of the air: from despising stablecoins a year ago to the high-profile entry of capital today
The survival dilemma of small and medium exchanges behind the withdrawal anomalies exposed by AscendEX
Why Is Bitcoin Falling Below $60K? 5 Key Market Drivers Explained
Bitcoin has dropped sharply amid ETF outflows, Strategy stock weakness, AI stock rallies, and changing Fed expectations. Explore the key forces driving BTC’s latest correction and what traders should watch next.
Bitcoin vs. Gold in 2026: Which Asset Performs Better in Different Markets?
Morning News | The draft amendment to the People's Bank of China Law aims to clarify the legal status of digital renminbi; South Korea will transfer about 40 unregistered virtual asset service providers to law enforcement agencies
The cryptocurrency industry has entered the "Show Me" era: merely relying on vision is no longer enough
Interpreting the Ethereum Foundation's new structure: Reaffirming self-sovereignty amid institutional trends
Former SpaceX engineer reconstructs the financial execution system using first principles
Standard Chartered Bank sings a 50x rhapsody again, aiming for AAVE to reach 3500 USD
Tidal Investment: We still have a positive outlook on the AI industry chain, but the reasons have changed
Morning Report | CoinEx becomes a key hub for Iran to evade sanctions, involving over $3.8 billion in funds; Kalshi seeks a new round of financing, with a valuation potentially rising to $40 billion
From the white-haired stock god to the billionaire fund mogul, the smart people shorting Nvidia are all getting rich using the same framework
Why do cryptocurrency projects always like to change their names?
Global Launch: As predictions become the most scarce asset in the AI era, Manadia is defining the next generation of the value internet
Who is footing the bill for the $64 billion accounting frenzy?
I never expected that the first application of AI x Crypto would be in security auditing
Popular coins
Latest Crypto News
