Original sourceCrypto.news
Summary
South Korea’s Financial Supervisory Service (FSS) launched sanction proceedings against Dunamu, operator of Upbit, over the wallet hack in November 2025, issuing a notice of inspection findings. As the current Virtual Asset User Protection Act lacks explicit penalty provisions for hacking and secur…
Key points
- Provides a reference for regulators and trading platforms worldwide on handling exchange hack incidents, compensation mechanisms, and regulatory review directions.
- The regulatory case of South Korea’s largest exchange highlights the legal inadequacies in many countries regarding information security incidents on virtual asset platforms, potentially spurring new legislative amendments.
- Users should pay attention to whether exchange security protections and compensation mechanisms are adequate; operators need to prepare for stricter future security regulations, including rules on hot/cold wallet management, penetration testing, and incident reporting.
Editorial note
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